Abstract:The labor market and housing market equilibrium models were established, and the empirical studies were made of the effect of productivity growth and industrial structure on the housing prices on the basis of the annually data for the 35 major cities in China from 2002 to 2012. Analysis results show that the productivity growth raises the housing prices, and the effect of the third industry is stronger than the second industry; the changes of industrial structure also raise the housing prices. Housing price rising is the inevitable result of the productivity growth and industrial structure changes, and the interventions, such as the accountability system for stable housing prices by the central government, are not in line with law of market. Government should focus on leading the industry and labor to the medium and small sized towns, and promote the balanced development of large cities and medium and small sized towns, for construction the long term mechanism of the housing market.
