Research on Supply Adjustment Stickiness in China’s Real Estate Price Fluctuations

The macroeconomic regulation and control policy in China’s real estate market is often in a state of failure. A significant reason for this is the lack of consideration for supply factors in the real estate market. China’s real estate regulation and control policies are designed based on the larger long-term housing supply elasticity. However, actually, some factors existing in China’s real estate market have led to reduced supply elasticity of real estate in a long run. Using stock adjustment model of previous research with equilibrium analysis, this paper draws a conclusion that the ideally expected housing supply elasticity is greater than the actual housing supply elasticity. The supply adjustment viscosity effect caused by the reduction can result in failures for real estate regulation and control policies. After analyzing the housing price elasticity and supply stickiness coefficient, it can be found that as the only supply main body in land market, the local government’s economic behaviors would lead to the occurrence of the real estate supply adjustment stickiness effect.