Uneven compensation and relocation for displaced residents: The case of Nanjing

Abstract

Land marketization and housing commodification have stimulated inner-city restructuring and urban expansion in China and have also induced a large amount of population displacement. Affordable housing, as part of compensation, tends to be the most common relocation housing for displaced households. It is allocated through two approaches: in-kind compensation and monetary compensation. Local government provides in-kind compensation to displaced households in the form of affordable housing, as direct compensation for demolished houses, and gives priority to those who have received monetary compensation to enable them to purchase affordable housing at a discount from the market price. The process of negotiation between local government and displaced households is complicated. As a result, uneven compensation occurs in terms of compensation approaches, as well as in how much displaced households are paid for similar new affordable houses. This study conducts a detailed analysis of the uneven displacement compensation and relocation process. It uses residential surveys conducted in Nanjing to examine uneven compensation along two dimensions: compensation approaches and the purchasing discount on new, compensated affordable housing.