Despite their strongly egalitarian ideology, there is considerable evi
dence from socialist countries that individuals of higher socioeconomi
c and political status have privileged access to housing of good quali
ty and at a low cost. In this study of urban China, we examine the bro
ader issue of the quality of neighborhoods to which people have access
. We find that the political position of one's work unit has strong ef
fects on locational resources. Individual characteristics including ed
ucation, occupational standing, and political status also have signifi
cant effects, but income does not. We interpret these results in terms
of a housing system based not on individuals but on firms, and not on
markets but on rules of allocation.