Strategic Interaction in the Supply of Affordable Housing Construction Land: Evidence from China’s Cities

This study examines strategic interaction effects in the supply of affordable housing construction land among Chinese urban governments. Existing studies have predominantly examined China’s subsidized housing land supply from a vertical intergovernmental perspective, whereas this study investigates...

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Bibliographic Details
Main Authors: Zhen Wang, Haiyong Zhang, Siyu Liu, Jie Chen
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Buildings
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Online Access:https://www.mdpi.com/2075-5309/15/10/1684
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Summary:This study examines strategic interaction effects in the supply of affordable housing construction land among Chinese urban governments. Existing studies have predominantly examined China’s subsidized housing land supply from a vertical intergovernmental perspective, whereas this study investigates strategic interaction effects in municipal governments’ land allocation for subsidized housing from a horizontal and regional viewpoint. By conducting spatial econometric analysis on panel data from 278 prefectural-level cities in China (2010–2019) and constructing multiple patterns of intergovernmental strategic interactions based on diverse spatial weight matrices, this study provides robust evidence of strategic interactions and their underlying mechanisms among Chinese municipal governments in allocating construction land for affordable housing. The study reveals that Chinese urban governments exhibit positive strategic interactions in the supply of affordable housing construction land. This collaborative pattern demonstrates convergent (rather than divergent) supply strategies among horizontal intergovernmental relationships, further indicating a cross-regional equalization trend in China’s affordable housing provision. Two latent mechanisms drive these strategic interactions: spillover effects from intra-provincial political competition and the proactive agency effects of key local leadership figures. Therefore, China’s central government must fully account for the strategic interactions among municipal governments in allocating construction land for affordable housing. It is essential to establish adaptive regulatory mechanisms for regional cities’ supply of such land and ensure healthy, sustainable allocation of urban construction land for affordable housing through targeted interventions.
ISSN:2075-5309