In order to solve the problems existing in the practice of the rural housing land use rights system, such as extensive use, unreliable circulation, and waste of resources, Liuyang City undertook the Central Authorities to carry out drastic reform of the homestead righttouse system within the city. After three years of reforms, Liuyang City has achieved good results in the intensive use of homestead, free circulation, and paid use. But at the same time it also shows some issues that the village committee is unable to effectively play the main role of the reform, that there are obstacles to the homestead withdrawal system, and that reforms lack of funds. In order to further deepen the reform of the homestead system, it is necessary to further strengthen the construction of village collectives, explore multiple modes of homestead withdrawal, and use private capital to solve the capital crisis.