Based on a moderate debt perspective, an unbalanced panel model has been constructed for an empirical study on the impact of house price changes on household consumption by using data from the China Household Finance Survey (CHFS) in 2011, 2013, 2015, and 2017. Research has found that housing prices exert a significant impact on household consumption, with an inverted U-shape shown for the relationship between the two. As housing price rises, its wealth effect on household consumption gradually shifts to a crowding-out effect. Moderate debt plays a moderating role in the transmission between changes in house prices and household consumption. When households make a utilization of the moderate debt leverage, the inflection point of the inverted U-shaped curve of housing price changes on household consumption remains at a higher position, which is beneficial for households with higher net assets to increase their marginal propensity to consume through moderate debts. Based on this, it is advisable that the government should regulate housing prices to return to a reasonable range, give full play to the wealth effect, and implement city-specific policies to curb excessive speculation in the real estate market, encourage residents to make reasonable use of moderate debts, and advocate for a living mode“within means”.