High savings and high housing prices are two economic phenomena for which people show a great deal of concern in China. Some scholars believe that high housing prices lead to household’s precautionary savings, thereby pushing up the savings rate. This viewpoint is not only contrary to the traditional wealth effect, but also inconsistent with international experience. Based on the data of funds flow table from 2000 to 2011, we find that changes in household savings can only explain 35% of increase of total savings. Furthermore, by use of the panel data of 35 cities, we establish the static, dynamic, spatial panel, panel simutaneous equation models repectively, and make an empirical test on the relationship between house prices and household savings and discover that the increase of housing prices can’t explain the change of household savings rate.