From the initial economic reform in 1979 to 1999, China’s housing reform policy has been through two main stages of institutional change, Public-House-Stage (1979-1998) and Private-House-Stage (1999-). With the points of view in legal system construction and property rights protection, this thesis attempts to analyze related central and local governmental policies with a institutional change aspect. Due to the socialism ideology, China’s housing reform theories are about two dimensions, one is for land possession arrangement, and the other is about property rights privatization. As for both of the two dimensions, we can also discuss with both legal and economic systematic constructions. Just like other fields of economic reform in China, there were so many similar problems occurring during the institutional change, such as pricing and banking disorder, rent-seeking, and other market malfunctions. In order to offer the suggestions by analyzing these past and present policies, all further researches may also try to keep an eye on globalizational housing cooperation within local cities under the framework of UN-HABITAT.