How Will Proximity to Higher Education Affect the rental Housing Market? A Case in Beijing : A Regression Analysis of Rent Level in Beijing

Abstract: Education would always be an important issue in China. Capitalization of education wouldhave impact on housing price and rent price and affect the housing market, this can bereflected from the phenomenon of ‘over-priced school district house’. While thecapitalization of higher education on rent price is always be neglected.In that case, the propose of this study is to estimate the relationship between highereducation and rental market price level in China based on the rental market in Beijing.And the study would focus four zone in Beijing, each of them contains one to twouniversity district and surrounding non-university district.Hedonic pricing model would be used in this study to determine the impact of independentvariables on the rent price development.The result of this study indicates a complex relationship, it finds that the relationshipbetween higher education and rent price in different zones while most zones shows apositive relationship, and the overall result is insignificant. And according to our research,some target suggestions were pointed out.