China's cash-for-housing program moved people to better locations

China converted old homes into cash for residents. This let people buy houses in more expensive areas. It also pushed up house prices in those areas.

This study shows that giving people cash for housing, rather than just building new homes, can directly enable migration to better locations. It suggests that financial constraints, not just housing availability, are a key barrier to people moving. This response amplified the effect of the cash transfer by about 40% and contributed significantly to housing price growth.