This study constructs a dynamic general equilibrium model including housing loans and analyzes the influence of the residential loan model on the relationship between housing prices and consumption. The results are as follow: (1) a housing preference shock will lead to a decline in consumption when house prices rise in China; (2) the impact of the shock in China has been amplified by residents who hold more loans for home purchases without refinancing; these shocks influence residents’ capital allocation in different expenditures through housing loans; and (3) American residents prefer mortgage loans, which promotes consumption growth when housing preference shocks through intertemporal income transfer; (4) progressive property tax can alleviate the crowding out effect on consumption in China.