The Impact of Consumption Downgrading on Housing Purchase Decision of Chinese Middle Class: An Analysis Based on the Life Cycle Theory and Marriage Market Theory

In the face of the trend of consumption downgrading, the purchasing decisions of the middle class regarding real estate have undergone new changes. Existing literature on the housing market and purchasing behavior of the middle class under the trend of consumption downgrading suggests that the purchasing power of the middle class has generally decreased, with many unable to bear the costs of mortgage loans and other housing-related financial burdens. As a result, the number of people purchasing real estate in the future may decrease. Based on existing research and practical needs, this paper summarizes the trends of previous studies through a literature review, pointing out their shortcomings. The paper further explores the decision-making process of the middle class in the context of consumption downgrading and analyzes the reasons for this situation using the Life Cycle Theory and Marriage Market Theory. The goal of this research is to provide policy recommendations for policymakers and reasonable suggestions for middle-class housing consumption decisions. The analysis shows that the middle class tends to rent housing or purchase small-sized properties, and that owning property is an important factor in the marriage market, especially from adulthood to the marriage stage.