Is China’s housing market in a bubble? Will China’s real estate price go up or down? What are the factors behind to support an ever increasing housing price in China? These are all big tough questions. Recently a graph from Credit Suiss caught Chinatells’ attention. According to the graph, there is a positive correlation between the number of new graduating college students and China’s property price since 1999. In the foreseeable future there are likely more students to graduate from college. Therefore such a trend would be a supporting factor to the housing price. It seems that the two did go up hand in hand in the past ten years. However I am not sure such a positive correlation provides good evidence to support a causality between the two. A good potential reason for an increasing trend of college graduates is that the Ministry of Education has allowed the universities to increase the enrollment of students in the past ten years. Such an increase trend is consistent with a downtrend in the young labor supply in the past decade. Therefore I doubt whether the positive correlation will continue in the next few years.