The commercial collective-owned construction land entering the market to develop commercial housing is conducive to the establishment of a unified urban and rural construction land market and a housing system with multi-subject supply, multi-channel guarantee, and encouragement of both renting and purchasing. However, there is still a big controversy over whether collective land can be used to develop commercial housing, and in the pilot reforms of commercial collective-owned construction land entering the market, fewer commercial housing development projects are involved, and related research also lacks in-depth discussion of its income distribution and specific operation. This paper analyzes the experiments of developing commercial housing on commercial collectively-owned construction land in three pilot areas, including Changyuan in Henan province, Zezhou in Shanxi province, and Beiliu in Guangxi province, and finds that the government, collectives, and enterprises can all profit from the development of commercial housing on collective land. The alignment of the interests of these three parties is the driving force of innovation; most of commercial collective-owned construction land for the development of commercial housing is located in the village or central village where the township (town) station is located outside the urban planning area, and although the planning and construction area in the commercial collective-owned construction land is the area with the greatest potential for the development of commercial housing, it is also the area with the greatest reform cost and the greatest difficulty in balancing the income, so it has not become the preferred location for the experimental test of developing commercial housing on commercial collective-owned construction land; by formulating differentiated collection standards for value-added income adjustment fees, bundling public infrastructure projects, and collecting value-added income balance redistribution fees, the pilot areas have basically achieved the balance of interests among different entities. It can be seen that the commercial collective-owned construction land entering the market to develop commercial housing is not only in line with the direction of reform, but also has realistic needs, and can properly solve the problem of balance of interests through appropriate regulations. The revision of the Land Administration Law has removed institutional obstacles for commercial collectively-owned construction land to enter the market, but the development of commercial housing on collectively-owned land is affected by unclear policy orientation, a lack of supporting systems, imperfect income distribution mechanism, and lack of basic conditions. Therefore, the process of developing commercial housing on commercial collective-owned construction land is stalled in practice. It is recommended to deploy a new round of pilot reform of commercial collectively-owned construction land into the market as soon as possible, and take the development of commercial housing on commercial collectively-owned construction land as the key content of the pilot, encourage the pilot areas to gradually expand the experiment of developing commercial housing on commercial collectively-owned construction land from urban villages and urban planning areas to planning and construction areas, from existing collective construction land to new collective construction land, actively explore the establishment of a reasonable value-added income distribution mechanism, and continuously improve relevant supporting policies. Compared with the previous literature, this paper has expanded and deepened this study in the following two aspects. On one hand, based on practical investigation, from the perspective of interest balance, this paper analyzes the reform dynamic mechanism, pilot location selection and income distribution adjustment of commercial collectively-owned construction land entering the market to develop commercial housing, and then demonstrates the practical feasibility of collectively-owned land to develop commercial housing. On the other hand, the practical difficulties faced by the construction of commercial housing on collective land are systematically discussed, and corresponding suggestions are put forward. Based on the investigation and analysis of the practice of commercial collective construction land entering the market to develop commercial housing in pilot areas, this paper helps to eliminate differences in understanding, promote reform practice, and provide a policy reference for steadily promoting the reform of developing commercial housing on collective land.