According to the “National Plan for NewStage Urbanization”, more attention should be paid to housing market in small cities so as to build up a multihierarchy housing supply system on the basis of market economic theory. Based on the questionnaire data and demand theory of neoclassical housing economy, the paper analyzes the housing demand structure of small cities in Jiangsu province and the impact of urbanization factors on housing demand from the perspective of selfliving renting and consumptioninvestment. At the same time, it compares the conclusion with the present housing demand of big cities to promote the sound development of housing market in different cities.