This thesis revisits the positive contribution of urbanization to the Chinese housing boom and examines the role of local government debt in the housing market by focusing on a special type of local government financing mechanism involved in urban infrastructure financing, namely bonds issued by the so-called Local Government Financing Vehicles (LGFV). Using panel data models with fixed effects, I confirm the stimulating effect of urbanization and find exploratory evidence that LGFV bonds have fueled the housing price appreciation since the 2008-2009 fiscal stimulus program. This is likely because increased investment in urban infrastructure has boosted regional income and increased demand for urban housing. These findings expand the current discussion on the Chinese housing boom and caution that any decision to encourage or tighten LGFV borrowing may trigger repercussions in the housing market.