In recent years, the rise of housing price becomes the social focus and the housing prices are very much different in different places of China. Real estate, in terms of social development, has wealth accumulation effect and can promote economic growth but can give rise to real estate bubble and even lead to financial crisis when non-rational behaviors emerge in real estate market. The main factors to cause too fast enlargement of real estate of China are land finance, two-polarization of income distribution, price expectation between supply and demand, domestic financial support and inflow of foreign capital, meanwhile, the regulating effect of central government on housing price is restricted by local government, developing businessmen and banks. Thus, the regulation on real estate market should find a proper balance point, should not cause short-term economic retreat and should not mushroom the bubble. From long-run point, real estate should not be taken as a pillar industry but emerging industries should be actively developed and new pillar industries should be cultivated, taxation system reform and income distribution system reform should be accelerated.