Based on quarterly data from 34 large and medium-sized cities between 2014 and 2015,this paper uses difference in difference-propensity score matching (PSM-DID) approach to study the effect of new provident fund policy on real estate market.The result shows that on the whole,new provident fund policy has no significant impact on housing prices，but it has significantly reduced the housing inventory.Furthermore,fund policy of the first suite and the second suite has no obvious effect on housing prices,but it has the significant pushing effect on housing turnover and fund policy of the first suite is better than fund policy of the second suite.Therefore,new provident fund policy can help to reduce the amount of housing inventory while keeping the housing prices unchanged.In the future,intensive support of fund policy for middle-income groups and under middle-income groups can not only ease inventory pressure but also help to improve “fairness” issue.