By Shi Shujie, Research Department of Development Strategy and Regional Economy, DRC; Li Yifei, Management World Magazine & Wang Yingfei, School of Economics and Business Administration at Beijing Normal University

Research Report, No.376, 2021 (Total 6441) 2021-12-8

Abstract: China’s social wealth has been accumulated rapidly whereas the wealth disparity is becoming prominent. The property gap has exceeded the level of some advanced countries. Viewing from the internal structure, the biggest attributor to the gap is the value of real estate, and the influence of equity assets is also increasing. As a major constraint on promoting common prosperity, the relatively wide property gap would enlarge the income gap, erode opportunity equality, restrict economic transformation and lead to self-expansion. In the new development stage, we need to pay more attention to narrowing the property gap. It is not to rob the rich to assist the poor, but to curb the enlarging trend of wealth inequality and to share the growth dividends of national wealth with the people. From the short term perspectives, acting on the principle that houses are for living in, not for speculation, is an important premise to prevent the further enlargement of property gap. From the mid-to-long term perspectives, relevant government departments need to deepen the reform on housing system, speed up the taxation structural transformation and enable more people to share the dividends of wealth growth by raising the labor compensation ratio, accumulating public wealth and expanding property income channels.

    Keywords: property gap, common prosperity, approaches and policy options