In this paper，urban households are divided into three groups: those who possess at least two hou-ses ( household type 1) ，those who own only one house ( household type 2) and those who have no houses household type 3) ． The analysis based on a microeconomic model constructed in this paper reveals that con-sumption of the first two groups increases when housing prices rise． However，members of the last group make different reactions to the rising of housing prices: their consumption decreases because of crowding-out effects when they have plans to buy houses and increases when they have not． The impact of fluctuation in housing prices on consumption is correlated with levels of consumption，housing prices，living area，habit of consump-tion，risk preferences and interest rates． Empirical analysis based on data from China Household Financial Survey ( CHFS) indicates that the rising of housing prices stimulates consumption of all kinds of households．Additionally，the effect is most significant for household type 3 and least significant for household type 2． It is also different between three regions in China and most significant in the East region．