All over the world, government intervention in housing market is a routine to maintain economic sustainable development and improve housing conditions, even in market economic countries. Housing policy, as an exogenous variable, will have many effects on housing market. So, we should analyze the effects dynamic of housing policies on housing market to insure accomplishment of housing policy’s prospective purposes. Housing policy includes housing supply policy and housing demand policy. The effects primarily involve efficiency, fairness, market effect and externality. The principal theme of this paper is market effects of housing policy. We find land supply constraint will tend to increase housing price and decline the housing affordability. And the government regulation and rental control will decrease the affordable housing stock for low-income households by market filtering up. Housing subsides on low-income households will give an incentive for developers to build the low-end housing in longer run. Finally, some suggestions are provided for housing policymakers.