Consumption and Tenure Choice of Multiple Homes in Transitional Urban China

As China is becoming a country of homeowners, multiple homeownership is emerging. The existing literature on tenure choice focuses on the primary home and the literature on the consumption of multiple homes focuses on second homeownership only. We argue that decisions regarding whether to have multiple homes and what kind of tenures to have for multiple homes are all part of the complex decision-making for the 'housing portfolio', thus have to be understood together. With a conceptual framework that features both socio-economic and institutional determinants and 2005 China General Social Survey data, this paper studies the patterns and tenure dynamics of multiple homes in urban China. While life-cycle, affordability and generational transfer contribute to the consumption and tenure decision of multiple homes, the persisting household registration system and continuing allocation of subsidised housing lead to the peculiar tenure combination of renting one home and owning additional homes, and living in public housing and owning additional homes.