Abstract: In recent years, housing prices continued to rise, especially with rapid growth rates periodically in some areas. This phenomenon and its possible economic and social problems caused widespread attention. Based on the inter-provincial panel data of 27 provinces in central, eastern and western regions of China in 2000-2010, we found that regional income disparities and the rate of change of housing prices exists co-integration relationship. Further, our results show that distribution effects of housing price fluctuations have obvious regional differences by LSDV method, that is, income gaps and housing prices fluctuations have positively correlation in eastern and western regional ,but the correlation is not obvious the central region. Therefore, in addition to the real estate macro-control policies to curb speculative demand, we should focus on solute the widening income gap and other social problems which produce by housing prices fluctuations, and should be treated differently in different areas.

Key words: Housing price fluctuations, Income gap, Regional differences