A Study on the Impact of Housing Wealth on the Consumption of Urban Residents in China Road

Urban residents' consumption serves as the core of the national economic cycle and a stabilizer for economic growth, while expanding domestic demand to promote consumption is a key driver of high-quality economic development. As the core wealth of urban households in China, housing value fluctuations profoundly influence consumption decisions. Against this backdrop, studying the impact of housing wealth changes on urban residents' consumption holds both theoretical and practical significance. Based on microdata and within the framework of the Life Cycle Hypothesis, this paper systematically explores the impact and mechanisms of housing wealth on consumption through empirical tests, robustness checks, heterogeneity analysis, and panel vector autoregression (PVAR) models. The results indicate that housing wealth appreciation significantly promotes total consumption and development-oriented consumption, with heterogeneous effects across groups, differential impacts from price fluctuations of different housing types, as well as asymmetric consumption effects of housing price changes. The wealth effect and credit constraint mitigation effect are identified as the core transmission mechanisms. Based on these findings, policy recommendations are proposed, including optimizing housing asset structures, reconstructing supply systems, and implementing regionally targeted regulation.