This study investigates the impact of housing prices on household non-housing consumption in central and western China, considering housing credit constraints. Using a panel threshold model and data from 2005 to 2020, the findings reveal a threshold effect of housing credit constraints. In the western region, the elasticity of housing price fluctuation on non-housing consumption remained negative, while in the central region, it changed from negative to positive when credit constraints exceeded the threshold. The study concludes that unaffordable housing prices and home-ownership linked to better public education resources are key factors leading to low non-housing consumption rates in these regions.

Huazhu Zheng, Jiao Qian, Guihuan Liu, Yongjiao Wu, Claudio O. Delang, Hongming He