1. Housing Market in U.S. and China The Rise and Fall of a Middle Class By Michael Sessa

2. Overview Background information on U.S. and China Discuss Culture and Subcultures Review what scholars are saying Methods used Results and Data Analysis & Discussion

3. Background – China Rapid Growth 2000-2008 – Low interest rates 121% price increase from 2003-2008 2013 -13% surge Government policies Income - 2000-2012 – 4%- 68% – $9,000 to $34,000

4. Background - U.S. Overall 6.46 % increase Very Volatile – Housing crisis Household mean income - stagnant

6. What Scholars are saying.. Jie Chen and Xuehui – Fastest growing housing market – Bubble or Burst ? Christian Dreger and Yanqun Zhang – Inflation in Chinese market – 35% Barth, lea, Li – This number doesn’t reflect real income growth

7. What Scholars are Saying cont.. Adam J. Levitin and Susan M. Wachter – Multiple factors – Some parallel to China Inelastic housing supply Excessive supply of housing finance – Lead to over production of homes Ashkok – Argues restriction may be Chinas saving grace Houku system Limits on # of homes purchased

8. Methods used Consumer and Market Sentiment? Survey – 30 Chinese and U.S. post-grads – 30 Chinese and U.S. real-estate agents Interview – 4 Chinese and U.S. post grads – 4 Chinese and U.S. real-estate agents

9. Survey Example – U.S. Survey United States In what year were you born __________ What industry would you consider your profession to fall under (select one) Finance Education Healthcare Tourism Entertainment Retail Self-employed Service Industry student What is your education Level (select one) High School Undergraduate Graduate Study What is you average Yearly income (select one) 0-30,000 31,000-50,000 51,000-75,000 75,000-100,000 250,000 and above On a scale from 1-5 how do you feel the overall economy is doing (5 being the highest) 1 2345 On a scale fro 1-5 do you feel housing prices are fairly priced (1 being unfairly priced, 5 being justly priced) 1 2345 In the next 5 years do you feel the economy will be better or worse (1 being worse, 5 being better off) 1 2345 Do you feel home ownership is important? YES/No Will you need to buy or have you purchased a home inn the past 5 years? YES/No How where you able to purchase a home (select all that apply) Personal SalaryAid from parents Spouse’s moneyGov. Subsidy Other In your personal opinion how do you feel about the current housing market?

10. United States Survey Results High School or Undergraduate Salary ranged 0-70K per year Economy is stagnant Housing prices scored 2.7 Economy Scored roughly 3 Most said – No need to buy

11. China Survey Results Mostly undergraduate 0-17,000 per month Economy scored high Housing prices scored between 3 and 4 Economic growth in next 5 years scored extremely high Almost all said home ownership was important

12. Interviews China Realtors – Consumer Base- Male, Married, 30+, First house – Housing prices will continue to grow – Heavy Restriction – Non residents Post Graduate/ Professionals – Single, 27, 28, Male, Finance industry – Help From parents, Owned a home, Have money set aside to buy a home – Both currently rent, possible job relocation – No concern for housing bubble, price will go up, demand is high Bubble outside of the major cities

13. Interviews United States Post Graduates/ Professionals – 24, 26 Finance, Law enforcement NY/FL – Very little help/ No Help, Both Rent – Feel a bubble may be happening, Both said no plans to purchase – Very low out look on homeownership Realtors -TBA

14. Analysis High Consumer Confidence in China Lower Consumer confidence in United States – Renting culture Rising Real estate prices in both Chinese Place High value on Home Ownership

15. Discussion