Abstract Residential differentiation means the unequal distribution of social groups in housing sub-markets divided by housing quality, tenure and location and so on. Housing reform exerts great impacts on the residential differentiation in urban China. After the reform, it is more freedom for households to choose the housing types and tenures and locations in term of socio-economic characteristics and housing preferences. Housing developers are encouraged to choose investment location and construct different levels of housing and neighbors to satisfy the need of different social groups under the guide of government. Different types of working units and service age of workers have distinctly different access to reform housing which makes unequal access to public housing resources. All kinds of access constraints make unequal distribution among different tenures of housing sub-markets. The matching process of households and housing is also essentially the matching process between housing and social ladders and the shaping process of residential spatial segregation. Exclusive housing policies based on registered permanent residence and self-characteristic of migrants are the main reasons for formation of especial residential space such as urban village.
2007, Vol. 22 
