A study of mechanism of urban residential segregation based on housing consumer preference

This paper uses Hedonic theory to deduce that the degree of residential segregation depends on the degree of consumer preference for location, and consumer preference for different location attribute will result in the different urban space structure. Based on the theoretical analysis, this paper introduces structural equation model to conduct an empirical analysis in Xipsilaan housing market. The results show that consumers have the greatest preference for the location of houses in comparison with neighborhood conditions along with the structural conditions, which results in the clearer residential segregation. Consumers prefer more for the district attribute and neighborhood conditions than the distance from the city center, thus the residential segregation in Xipsilaan hold a mixed structure which is mainly fan-shaped and mosaic shaped, and less concentric shaped. Moreover, the study proves that the role of government on residential segregation is greater than real estate developers. Hence, to control or weaken the tendency, we must depend on government intervening.