Abstract: Real estate price fluctuation affects urban residents consumption through wealth effect， crowding-out effect and mortgage effect. Wealth effect manifests itself mainly by realized wealth effect， unrealized wealth effect and consumer confidence effect. Crowding-out effect derives from substitution effect， budget constraint， debt service pressure and wealth redistribution effect. Mortgage effect is subject to the value and convenience of the mortgage involved. The empirical analysis suggested that housing price is the Granger reason of residents consumption， whose consumer wealth effect is greater than crowding-out effect， but mortgage effect is not significant. An analysis of the financial crisis nodes showed that a more recent period of time leads to a weaker correlation between residents consumption and real estate price as well as a worse interpretation of housing price for consumption. The economic effect of real estate has gradually weakened， and the government can guide its regulation from intensive instruction control to discrete leading control so as to promote the self-improvement and development of the real estate industry.

Key words: real estate price, urban residents consumption, wealth effect, crowding-out effect, mortgage effect