Using the dynamic monitoring data of China’s migrant population and the data of prefecture-level cities, the impact of housing conditions on the employment stability of migrant workers and its mechanism were explored. Firstly, the results of the benchmark model and instrumental variable model show that the employment stability of migrant workers who have housing in the cities where they work is significantly higher. Secondly, by observing the possible mediating effect and moderating effect, we find that housing property rights improve the employment stability of migrant workers through the house slave effect and lock-in effect. In addition, the rise of housing prices will enhance the employment stability of migrant workers with houses. Finally, according to the heterogeneity of housing type, employment status and generational differences, it is found that the employment stability of migrant workers with self-owned housing property rights is the highest, the employment stability of those who live in public rental housing and employer’s housing is higher than that of those who rent and live in private housing, and the employment stability of those who rent and live in temporary housing is the lowest. Housing property rights have a greater impact on the employment stability of employer-based migrant workers than on employee-based migrant workers, and it has a greater impact on the employment stability of middle- and old-generation migrant workers than on the new generation of migrant workers.