Mechanism and Control Countermeasure of Rent in China's First-tier Cities

The rent is decided by the demand and the supply in the rental housing market,which are influenced by the housing price.The main effects of housing prices on the demand in the housing rental market is due to the substitution effect between the rental housing market and the housing market,and the main effects of housing prices on the supply in the housing rental market is due to the price-to-rent ratio and the rise in prices.Nearly ten years,the rising rate of the housing price in China's first-tier cities is about 10%,which resulted in the price-to-rent ratio at a very low level.With the stable trend in housing price,the rent will rise significantly.Therefore,to stabilize the rent,measures must be taken to increase the supply in housing rental market in China's first-tier cities.