Abstract: By using the micro household financial data from China Household Finance Survey and the analytical method of group regression with debt leverage ratio, this paper analyzes the impacts of housing debt on household non-discretionary spending reflecting housing wealth effects. The research finds that household non-discretionary spending is the most sensitive to the change of household permanent income, and then with household population, housing value and finance asset in turn; the housing wealth effect of the household without housing debt or with lower housing debt ratio is significant, while that of the household with higher housing debt ratio is not significant, and has tended to become relative poor recently.

Key words: housing debt, household consumption expenditure, inhibitory role, housing wealth effect