Division of labor is helpful to raising labor productivity and increasing residents’ wealth and promoting resident demand growth so that market is enlarged and enlarged market further deepens division of labor. The interaction of market and division of labor promotes sustainable development of human society. If we say that household register is a wall which is being decreased, house price is the wall which is being increased to separate a city from rural areas and to restrict the flow of human capital and to hamper market scale and to make economy in imbalanced development. Low urbanization and small demand of the tertiary industry are the root for slow development of the tertiary industry. The countermeasures for deepening division of labor and market enlargement should be used to promote gradient upgrading of industry.