The real estate industry has played an important role in dramatic economic development in China. This study uses input-output analysis to investigate the economic impacts of real estate industry in chinese economy for the period 1996∼2011. Through the analysis, we can find some overall results. First, the real estate industry has relative high the forward linkage effect. so Chines authorities have enough attention to intervene in the macro economy. Second, the real estate industry has relative high the impacts of the production in the field of Financial Intermediation, Electrical and Optical Equipment and Other Business Activities. Third, the effects of the supply shortage in real estate industry on other sectors is Gradually decreasing. This study is based on General equilibrium theory and Leontief production theory, but can’t completely replace the other analysis method.