According to the Chinese Academy of Social Sciences' Blue Book on Macro Economy released Thursday, China's urbanization rate will peak around 2013 and begin to slow to 1 percent growth a year by 2030.

An annual 1-percent increase in urbanization level means an additional 14 million people living in cities each year.

China's cities were growing about 1.7 percent in 2008, when it had an urbanization level of 46 percent. The book predicts that the urbanization level will peak around 2030 at 68 percent.

The book also said urbanization would raise prices for residents, which could lead to unsustainable economic development. It suggested the government should keep costs related to social security, administrative fees and housing prices down by implementing a national social security system, reducing administrative costs and constructing affordable housing.