Since 2003, housing prices in Chinese cities have been growing rapidly. Over the following decade or so, the average housing prices in major cities were generally higher than the income levels of most residents. Many indicators indicated that there was a bubble in the real estate market. The bubble persisted in the economy for a long time and became a significant factor threatening economic security. However, the government found itself in a dilemma: on the one hand, it needed to ensure rapid economic growth, and on the other hand, it had to maintain economic stability. Through frequently and strategically putting regulation policies on real estate market, the government struggled to balance these two targets. Although several medium-sized and small cities experienced the shocks from bubble bursting, in general, the serious crises that occurred in East Asian countries and the United States did not occur in China. The special political economic system of China prevented the outbreak of a manifest crisis, but inevitably paid a price in other ways.