When addressing bubbles, the government often faces a difficult problem: how to deal with the excess output in the real estate market. This chapter analyzes a case in 2015. In November 2015, the unsold floor area of commodity housing in China was close to 700 million square meters. If calculated based on the average monthly sales rate from 2012 to 2014, it would take more than half a year to clear these inventories. Data analysis shows that the inventories of commodity housing in China had been on the rise from 2005 to 2014. This phenomenon existed nationwide, especially in large cities. The “indigestion” of China’s housing market had many causes, including changes of demographic structure, expansion of development investment due to optimistic expectations, the global economic cycle, and continuous policy stimulus for the real estate industry. The author believes that measures should be taken from both the supply and demand sides to restore market balance.