Situation of Study and Development on Housing Price to Income Ratio——Based on the Empirical Analysis of Shanghai Real Estate Market

The housing price of our country continues rising, besides the range of rise in housing price exceeding the range of rise in resident income. For this, Theory Circle and Practice Circle have launched a heated dispute on whether the bubble of Chinese Real Estate exists or not. But, because of the difference of theories basis, research methods and data sources, they are difficult to get to a common view. So we have many reasons to analysis the situation of study on Housing Price to Income Ratio, to develop and improve it and to consummate the System of Science on the Price to Income Ratio. First, this paper introduces the debates and reviews the situation of study on Housing Price to Income Ratio. Then, the thesis develops and improves Housing Price to Income Ratio from the financial assets, down payment, taxes and fees of house purchasing, mortgage loan of house, increasing rate of housing price and the resident income. Last, the paper makes use of the built theory frame to analysis Shanghai Real Estate Market positively and comes to a conclusion that the Housing Price to Income Ratio of Shanghai is evidently higher and needs to arouse the great concern.