How Do I Conduct a Residential Market Analysis?

The residential market is a collective term for the places where houses are used as consumer goods for exchange and the economic relationships that occur as a result of transactions. The residential market is an important part of the real estate market. It has relative independence and unique characteristics. Generally speaking, the residential market in a narrow sense refers to a place or space that provides transactions such as leasing, mortgage, and purchase and sale. The residential market in the broadest sense refers to the integration of economic and social relations resulting from the transfer, transaction, and other activities of residential ownership and use rights. Individuals or groups or individuals or groups who wish to purchase a home, etc.

Residential market

1. Regional ^[1]

(1) Substitutability is very low. Residence is a heterogeneous commodity. Numerous residential characteristics give each residential unit a distinctive personality. Different individuals cannot completely replace each other. ^[1]

1. Market players ^[1]

(1) Residential trading market. The main body of the market is composed of the Urban Housing Management Bureau, corporate real estate co-owners, and private individuals, and the transaction scope is limited to residential houses, industrial and commercial buildings, office buildings, etc. Openness, concentration, and controlled competition are its characteristics. ^[2]

The significance of the residential market lies in the circulation process that connects the production and reproduction of the real estate economy into a cycle before and after, and in the cycle process, the market mechanism is used to link building materials, construction, construction machinery and finance, transportation, and consumer goods. Industry-driven economic movement in the chain. ^[3]

1. The residential market is an important condition for the smooth progress of the residential reproduction process. ^[4]

To reproduce in the housing production sector, the value of the house must be compensated and the value in use must be replaced. As a commodity, the compensation of the value of the house and the replacement of the use value are necessary conditions for the smooth reproduction of the house. And the realization of residential value cannot be separated from the residential market. We used to regard housing as a welfare. After the production of housing, it was directly distributed, so that the cycle of housing funds was interrupted in the circulation field, the value of the house was not realized, and the housing investment could not be recovered, which hindered the smooth progress of the residential reproduction . Only when housing is brought into the market for exchange, the value of the housing can be realized, the housing investment can be recovered, the normal movement, circulation and turnover of housing funds can be ensured, and the smooth reproduction of housing can be promoted.

2. The development of the housing market can promote the reform and development of the financial industry.

The housing industry is an industry with large investment and long capital turnover period, which makes the entire process of housing reproduction require financial support. The immovability and durability of the house, as well as the value preservation and value-added functions of the house, make the financial industry necessarily form a close partner with the house industry. Because of the inherent relationship between the housing industry and the financial industry, which is interdependent, mutually supportive, mutually reinforcing, and common development, the development of the housing market will have a significant impact on the reform and development of the financial industry. First, the development of the residential market will provide the conditions for the expansion of the financial industry. The residential market is a unified entity of residential real estate logistics and currency circulation, and the currency circulation in the residential market is the basic form of the residential capital movement. This movement of monetary funds has been continuously injected into and out of the residential market with the activities of buyers and sellers in the residential market. This capital operation mechanism of the residential market is inseparable from currency circulation. The strengthening of the role of the housing fund operation mechanism will inevitably lead to a large increase in currency circulation, and the financial industry is an industry that operates currency. The increase in currency circulation will provide conditions for the expansion and development of the financial industry that cannot be underestimated. Second, the development of the residential market helps to strengthen the scope and ability of banks to regulate the economy. With the development of commercialization of housing, especially the sale of public housing, a huge development of residential credit business will be required, which will promote the improvement of bank credit business structure. Thirdly, with the development of the residential market, it is necessary to establish some specialized residential financial institutions and provide a variety of credit services. Therefore, the development of the residential market will prompt financial institutions to diversify and financial businesses to diversify. Finally, the development of the residential market will also contribute to the development of the insurance industry. With the commercialization of homes, homeowners will become more concerned about their homes, and home insurance will increase with each passing day. At the same time, residential mortgage activities will continue to increase, and in order to prevent the loss of the value of the residential mortgage as a result of accidents, the lender will require the borrower to insure the home before the mortgage. Due to the huge amount of residential assets, it can actively participate in insurance, which will obviously have a profound impact on the development of the insurance industry.

3 The development of the housing market is conducive to the establishment of a socialist market system.

The establishment and improvement of the socialist market economic system depends on the establishment and improvement of the market system, and a complete socialist market system cannot exclude the residential market. Because in the socialist market system, the housing market has a very important status and role, it is interrelated and restricted with other markets. On the one hand, the development of commodity markets and factor, financial, labor, real estate, technology, information and other factor markets provide a good external environment for the development and improvement of the residential market, which is conducive to the development and improvement of the residential market. On the other hand, the development of the residential market will greatly promote the development and improvement of the commodity market and various factor markets. The commercialization of housing has promoted the paid use of land, thus promoting the development of the real estate market. Houses are high-value durable consumer goods that provide a place for people's consumption activities. With the development of the residential market, the improvement of people's living conditions is conducive to the development of other consumer crystal markets. Housing construction involves 23 categories and 1,858 varieties of building materials, which are connected with products from more than 50 production departments such as building materials, metallurgy, chemicals, forestry, machinery, and instruments. The development of the housing market will inevitably drive and promote the development of the market for means of production. The development of the housing market will drive the development of the construction industry, decoration industry, and maintenance service industry. These industries are labor-intensive industries. The development of the construction and decoration industry will inevitably cause huge demand for labor, thereby promoting the development of the labor market. The development of the residential market requires improvement of housing; quality is required, and the application of new materials, new processes and new technologies is an important way to improve the quality of residential production. Therefore, the development of the residential market will inevitably drive the development of the technology market. Information is a bridge for communication between buyers and sellers. The development of the residential market has broadened the service content of the information market. Therefore, the development of the residential market will inevitably promote the development of the information market. This shows that the housing market is of special significance for accelerating the establishment and improvement of the socialist market system.

4 The residential market is conducive to optimizing the consumption structure of residents.

For a long time, China's urban housing has implemented a low rent and high subsidy welfare distribution system. Because housing is not a commodity and there is no perfect housing market, housing cannot be normally circulated as a commodity, and residential consumption requires almost no personal expenses, which results in a situation in which the residential housing expenditure in China is too low and the consumption structure is unreasonable. With the development of the residential market, the housing rent-buying price ratio is becoming more and more reasonable, which can attract a considerable amount of consumer funds to residential consumption, increase the proportion of urban residential housing expenditure in the consumption structure, and help the consumption structure to develop in a reasonable direction.

5. The housing market is an important motivation for the rationalization of China's industrial structure.

Consumption-led industries have a single effect to drive the overall effect, which is an important law of industrial growth and market evolution. The leading consumer industries in the 1960s were plastic products, chemical fiber products in the 1970s, and household appliances in the 1980s. What was in the 90's? According to the law of consumption development and the actual situation of Chinese residents' consumption, we believe that the real estate industry based on the housing industry. Therefore, seize the current opportunity to actively explore and improve the residential market, to start other markets, to promote the development of other industries and deep adjustment of their internal structure, to promote the rationalization of the industrial structure and the virtuous circle of the national economy; it will play a multifaceted role Important role.