This study examines the impact of rising housing prices on household consumption in Korea. Because housing prices and consumption are potentially endogenous, the analysis employs housing characteristics as instrumental variables for housing prices. The construction of a high-speed rail station could stimulate travel-related consumption and increase housing values due to improved accessibility. The result from the IV estimation indicates that a 10% increase in housing prices raises household consumption by 1.06%. The study explores heterogeneity across housing prices, income levels, and household debt status. The response of consumption gradually diminishes as housing prices or income levels increase. Furthermore, households owning very expensive houses exhibit declines in consumption. These declines may have negative effects on the local economy. These findings are expected to have important implications for real estate policies.