Housing price stability is related to the stability of employment, finance, investment, and expectations. Based on the panel data of 267 prefecture-level cities in China from 2006 to 2018, this paper uses the simultaneous equation model to demonstrate the impact of local fiscal expenditure, population migration, and expectation on housing price. The research results show that the market expectation of house pricerising is the main driving factor of the rise. Besides, housing prices at the national level are positively affected by the capitalization of local fiscal expenditure, and housing prices in the eastern and central regions are significantly affected by population migration, and housing prices in the western region are supported by the proportion of the tertiary industry. Therefore, the key to stabilize house prices is to maintain the market confidence of the house buyers, to ensure the inflow of population helps to stabilize the housing prices in the eastern and central regions, and to ensure the development of the tertiary industry is an important way to stabilize the house price in the western region.