Housing and Subjective Class Identification in Urban China

Abstract

Abstract Housing has become a major dimension of socioeconomic inequality in contemporary China. This study investigates the effects of homeownership and housing wealth on people’s subjective class identification in urban China. Using the data from the China Family Panel Studies (CFPS) from 2010 to 2016, we estimate fixed-effects models and show that growth in housing wealth improves people’s perceived social status, and the improvement is greater in more economically developed areas with higher real estate prices and greater housing inequality. Owning a home enhances subjective social class only in eastern coastal regions but not in inland regions. These findings suggest that as homeownership expands and becomes universal in a society, the psychological benefits of homeownership may diminish, but the subjective impact of housing wealth would increase. The study contributes to the literature on the social consequences of housing in a transitional society that is experiencing rapid housing privatization and increased housing stratification.