Study on Equilibrium of Demand and Supply of Housing Market: A Case of Wuhan City

The purpose of the paper is to analyze the equilibrium of demand and supply of housing market from housing completion rate and housing vacancy quantity. Method of mathematical model was employed. Taking Wuhan as an example, the results indicate that the housing supply was surplus from 1999 to 2003. The housing demand was exceeding supply from 2004 to 2007. The structure of housing supply was unreasonable between 2005 and 2006 and effective supply was short. The housing demand and supply can be kept in equilibrium under reasonable macro-control policies through the forecast on the housing demand and supply from 2008 to 2015. It is concluded that, in order to realize equilibrium of demand and supply of housing market, the government should take countermeasures such as eliminating the non-market factors, increasing the housing effective supply, slowing down the improvement demand and suppressing the speculative demand.