Abstract: By matching the commodity housing price data of 35 large and medium-sized cities in China with the patent data released by China’s A-share listed companies from 2008 to 2017, the article re-examines the effect and mechanism of housing price on the quantity and quality of enterprise innovation from the perspective of innovation investment and talent policy. The results show that the rise of housing prices has no significant effect on the number of non-invention patents granted by enterprises, but it can significantly promote the number of invention patents granted and the total number of patents granted. This conclusion is still robust after considering the endogenous problems such as omitted variables and mutual causation. The results of heterogeneity analysis show that the rise of housing prices significantly promotes the innovation output of high-tech enterprises and non-state-owned enterprises, but has no significant impact on the innovation output of non-high-tech enterprises and state-owned enterprises. And the housing price has an inverted U-shaped effect on enterprise innovation in the first-tier cities, while it has a positive U-shaped effect on enterprise innovation in other cities. The results of mechanism analysis show that the cost effect of rising housing price will not crowd out R&D investment for invention patent innovation but will make enterprises increase core technology innovation investment to maintain high market competitiveness. Furthermore, the talent policy strengthens the promoting effect of housing price on enterprise innovation in non-first-tier cities, but the moderating effect is not significant in first-tier cities. Based on above results, the following countermeasures and suggestions are put forward: First, we should focus on the positive role of housing price in promoting the quality of enterprise innovation. Second, we should correctly deal with the challenges and opportunities brought by rising housing prices to enterprise innovation. Third, the government should take differentiated measures to improve the innovation output of various types of subjects and different cities. Fourth, Fourth, we should strengthen the scientific formulation and effective implementation of talent policy, and give full play to the positive regulating role of talent policy in the relationship between housing price and enterprise innovation.