Abstract: In the face of large-scale domestic regional industrial transfer phenomenon, this paper selects 2003-2015 panel data of 31 regions in China and uses the method of static two-way fixed effect model and dynamic SYS-GMM model to analyze the influence of relative housing prices on industrial structure. The results show that: in other conditions remaining unchanged, relative housing price shows an inverted “U” relationship with the second industry output value ratio and the proportion of employment, and show a significant positive correlation with the third industry employment and output, that is, when the relative housing price exceeds 3.25, there is crowding out effect on the employment of the second industry in the areas with high housing price, but it has a promoting effect on the employment and output of the third industry; in addition,impact of relative wage, education conditions and the convenience degree of traffic on the second or third industry is also different, but the air quality variables significantly indicate that China has been the phenomenon of environmental migration. Therefore, different regions should formulate reasonable housing policy and industrial development plan according to their own industrial development status.

Key words: regional relative housing price, labor mobility, industrial upgrading, two-way fixed effects model, system generalized moment estimation