The Impact of Housing Market Fluctuation and Housing Supply on the Housing Opportunities of Moderate- and Low-Income Households in 21st-Century Urban China: A Case Study of Ordos City*

Housing filtering is well documented in the West, but few empirical studies have applied this concept in China. Under the framework of housing filtering, this study investigates how the fluctuation of the commodity housing market affects the housing opportunities of moderate- and low-income households in Ordos City, China. The findings reveal that the excessive commodity housing supply is not helping moderate- and low-income groups during the housing boom period due to skyrocketing housing prices and low housing availability caused by multiple homeownerships of the rich. The burst of the housing market bubble in 2011 has favored moderate- and low-income groups, manifested by their increased purchases in the secondary housing market under decreasing housing prices. Nonetheless, the poorest households still face financial difficulties in purchasing commodity housing. Moreover, majority transactions in the secondary housing market involve medium-sized dwellings, suggesting that the supply of medium-sized dwellings is critical in facilitating the filtering process in Ordos City. This research argues that government intervention is needed to ensure the housing opportunities of the lower income groups. However, it is beneficial to discuss how market mechanisms such as filtering can be made effective to promote housing opportunities for the poor.