Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 7, No. 1, 2023 124 How to Make the Rational Return of Housing Price Keer Wang, Yuchi Ni, Yongxin Liang School of Anhui University of Finance and Economics, Bengbu, 233000, China Abstract: As a bright spot in economic development, housing price is one of the most talked about issues, but also an important challenge facing China. According to survey, the house price of the real estate industry in our country rises too fast. Real estate prices are getting out of control due to the high profits of the real estate industry and the emergence of speculative activities such as sky-high price speculation groups. At present, the state has found these problems and adopted certain measures and regulation policies to reduce the existence of adverse phenomena and avoid adverse phenomena in the real estate industry affecting the overall development of people's lives. Keywords: Real estate, Fiscal. 1. Current Status of Chinese Real Estate Market and Characteristics of Real Estate Industry 1.1. Promote our economic development Since the reform and opening, the rapid development of real estate industry, not only is the pillar of our national economy, but also can effectively promote the development of finance, construction, material and other industries, thus improving the trust of the people in the real estate industry. First, the real estate industry not only has a very close relationship with many other industries, but also promotes the development of other industries to a certain extent. Therefore, in the early stage, China gave great support to the development of the real estate industry, and also provided a series of policies conducive to the development of the real estate industry. This has effectively promoted the development of the real estate industry and our GDP has been on the rise for a long time. Secondly, the research results show that the real estate industry is related to the civilian housing problem, which in the development process, the real estate industry has irreplaceable value. 1.2. We will improve the quality of people's lives With the continuous improvement of our economy and public quality of life, common people's housing problems are related to common people's quality of life. First of all, with the increase of urban population, the demand for real estate is also rising. Strengthening the construction of real estate industry can solve the housing problems of the people, so as to ensure the standard of living of the public, and maintain the social order from the side. Secondly, through the comparative analysis of the living standards of the public, it can be found that the general income of the people who own private houses is relatively stable, living and working happily, which indicates that the healthy development of the real estate industry can effectively improve the quality of life of the public. 1.3. The real estate industry still needs to be perfected The real estate industry has made a series of contributions to the development of other industries, but there are also many problems that need to be remedied. First, housing prices rise too fast, real estate bubbles appear in many areas, many people can not afford the high housing prices, not only seriously affect the people's lives, but also affect the standard of living. Second, due to the high profits of the real estate industry, many investment enterprises in real estate have further disturbed the state of the real estate mayor/market, and the imperfect mayor/market mechanism also needs to be improved to a certain extent. Third, the rapid development of the real estate industry, the reversal of some speculation, the creation of the sky-high speculation group, which is the main factor leading to the chaos of the real estate industry. 1.4. House prices are rising too fast The real estate industry is just in need of the industry, so people have a certain confidence in the real estate industry, many people are buying real estate to fight against inflation. As a result, housing prices rose so fast that even some areas were sold out on the opening day, and some real estate companies adopted the Haohao selection method for sales. First, the demand for real estate is too strong, and the initiative is controlled by real estate enterprises, which leads to a series of irrational increases in real estate, and even the second-hand housing market is asking absurd prices. Second, due to the considerable profits of the real estate industry, the gradual increase of commercial housing, the imbalance of affordable housing and other housing, some low-income people are unable to buy private housing, which has a great impact on the improvement of the real estate industry. 2. Causes of the Current Situation of the Real Estate 2.1. Inflation Inflation means that when paper money is in circulation, the money supply is greater than the objective demand for money in circulation, the value of money declines and the overall price level rises. The latest figures released by the People's Bank of China (PBOC) show that the inflation rate reached 7.5 percent in 2014, 12.8 percent in 2015, 8.5 percent in 2016 and 7.5 percent in 2017. As a result, rising house prices have become an inevitable trend. 125 2.2. Costs have risen, mainly in land prices In the aspect of land management, our country does not put the red line of cultivated land on the market, so as to adapt to the demand of construction land in the process of urbanization, THE scarce LAND for real estate development can not meet the MAYOR/MARKET demand. The land cost is rising continuously, and the "land king" is updating the highest value day after day. Land price occupies a large proportion in real estate cost. Real estate experts estimate that land prices usually account for more than a third of the cost of commercial housing, so higher land prices are bound to lead to higher prices. In addition, due to the influence of international raw materials, the prices of some construction materials have generally increased by different extents. Due to the factors of consumer demand and technological development, material quality and residential technology content, the real estate costs have increased. 2.3. Changes in supply and demand 2.3.1. Domestic urbanization process speed up factors. The urbanization process is accompanied by a large number of rural population into the city, which will greatly strengthen the rigid demand for urban real estate. 2.3.2. The historical and cultural reasons of our country. Our country experienced more than 2000 years of feudal society and semi-colonial and semi-feudal society until the founding of New China in 1949. On the economic basis of feudal small-scale peasant economy, land was the primary means of production and living. It can be said that the traditional feudal thought had a profound influence on the common people. Because land has the highest status in the hearts of Chinese people, buying a house has almost become the highest psychological needs of ordinary people. In addition, the psychological demand to buy a house enables the common people to buy a house without any hesitation. The good performance of the investment property of real estate further stimulates the investment demand of real estate and accelerates the rise of the housing price. 2.4. Macro-control The government has taken a series of measures to curb the rapid rise of housing prices to promote the healthy development of the real estate sector. This is also one of the important reasons for the current situation of housing prices. 3. Conclusions and Suggestions On the Development of Real Estate Industry 3.1. The property industry is improving Although there are still many problems in the current real estate industry, the Chinese government and enterprises are actively improving and solving the relevant problems, so the overall situation of the real estate industry is more optimistic. First, the government has issued a series of regulation policies to promote the rationalization of the real estate market, at the same time, the government's guidance to the real estate economy has been increasing; Second, in the case of continuous currency depreciation, the increase of housing can not only resist inflation, but also promote the long-term and effective development of China's economy. At the same time, a scientific and perfect real estate industry is also laying a good foundation for the development of decoration and home appliances industry. 3.2. The price of real estate is gradually becoming reasonable China is aware of the impact of the bubble on the national economy, so it is introducing a series of policies to actively regulate real estate prices. Through practical research, we find that the housing price in many first-tier cities with excessively high housing prices is declining slightly, which indicates that the housing price is moving toward rationality and the housing bubble will be reduced. First, only the slow rise of housing prices will not cause the real estate price to rise too much, so that the real estate industry gradually becomes stable. Second, the government has increased the collection of a series of real estate secondary transaction tax. Also let the real estate group because the tax is too high, in order not to be set, had to give up the opportunity to continue to fry. 3.3. The state is strengthening the real estate line! Related regulation of With the continuous development of the real estate industry and the increase of the number of commercial housing, the current number of commercial housing has not reached the saturation state, but the initial population is declining, it still needs to continue to increase the speed of regulation. First, the state is implementing relevant policies in accordance with the development rules of the real estate industry to reduce the vacancy rate; Second, China is paying more attention to low- income people, hoping to effectively improve the quality of life of low-income people, but also actively promote the natural harmony between people and the environment. At the same time, a series of macro-control policies show the government is determined not to sacrifice people's quality of life to improve the economy. 3.4. The real estate industry is strengthening its security for the poor With the emergence of real estate speculation groups and vicious hoarding, the real estate industry is in turmoil. As a result, the country is stepping up aggressive surveys of the amount of individual real estate and limiting individual hoarding through a series of lending rules. We are actively improving the real estate tax in the hope that the real estate tax can effectively solve the shortage of real estate supply. Because of the real estate tax, people s purchase desire is gradually rationalized. This shows that only by strengthening the improvement and innovation of the real estate tax can we strengthen the effective unification of the market and the real estate industry. Promote sustainable economic development and provide relevant housing security for the poor (e.g. affordable housing, low-rent housing pen). 4. Conclusion Real estate speculation groups have emerged in more and more areas, and real estate prices are getting out of control. Now, the state has identified the problem and implemented a series of regulatory policies, hoping to exert pressure or force intervention to prevent the property price slump from affecting people's overall lives. The real estate industry has become the pillar industry in our country, not only because it occupies a special place in our people's hearts, but also related to people's living standard and quality of life. Therefore, it is necessary to strengthen the scientific and reasonable development of the real estate industry, so that the real estate industry can actively promote the development of other 126 industries at the same time, but also effectively control themselves, so as to reduce the negative impact in the process of development. References [1] He Hong:Analysis of Countermeasures to restrain the fluctuation of Real estate market [J]. 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