Abstract: Consumption is a significant topic in the field of economic research, with property value exerting a profound impact on residential consumption. Relevant studies on the measurement of property value and its effects on residential consumption, as well as its mechanisms and heterogeneity, continue to expand. Starting from consumption theory, the paper, through a review of relevant literature, identifies the following key points: firstly, property value has a significant promoting effect on residential consumption through its asset and wealth effects; secondly, precautionary savings and budget constraints are the main mechanisms explaining the impact of property value on residential consumption; thirdly, within individual life cycles, the elderly tend to have stronger precautionary savings motives, and the likelihood of stimulating consumption by expecting to use housing for retirement is relatively low. Future research should deepen understanding by elucidating the differences between the asset and wealth effects of property value on residential consumption, exploring the asymmetry and changing patterns of wealth effects, and summarizing international experiences in real estate market development.