Housing demand is a part of household income allocation. Household income allocation can be separated into three parts including general consumption (composite goods, services and leisure), housing consumption and saving. Therefore, income allocation has a strong effect on housing demand. The official ìhome-based trip data in the Tainan metropolisî and ìhousehold income and expenditure data in Tainan cityî will be used to establish a model of householdsí income allocation. The model will be a log-linear model and be constructed under the hypothesis of utility maximization. Furthermore, household total income will be replaced by housing consumption which was calculated from a previous model to analyze household housing demand. It will be more precise than existing models.