With the development of urbanization and decline of social segmentation resulted from the household registration system, spatial mobility of the Chinese population continues to increase. Most people now work and live in the cities. However, the rising price for urban housing gradually becomes the barrier for immigrants to settle. There are two types of urban immigrants in China: immigrants with registered permit of the destined city (hukou), and immigrants without such permit. Analysis of CGSS data shows that the immigrants encounter disadvantages in terms of housing, but not income, when compared to the original inhabitants. Housing has become a social exclusion mechanism in urban areas, and exercises a cumulative effect (and to some extent intergenerational inheritance) due to the continual rising of the housing price in the past decade. If the housing price continues to rise, this social exclusion mechanism is likely to remain robust and becomes implicit.

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