Since the revolution of housing in 1998, China's urban housing began tocommercialization. The price of house keeps growing after revolution. As a dividingpoint , housing price increased slowly from 1999 to 2003 and fastly from 2004 to2011. Housing price is 2715¥in the second quarter of 2004,but it is 5391¥in the
second quarter of 2011.The annual average growth rate is 10.3%.
According to the permanent income hypothesis, the fluctuation of housing pricewill effect on resident’s permanent income, whic...