To address the typical phenomenon of urban residents' non-housing consumption shortage coexisting with high house prices, a panel threshold model is applied to study data from 31 provinces from 2005 to 2019 to explore the impact of house price fluctuations on non-housing consumption and reveal spatial differences. The results show that house price fluctuations have both crowding-out and wealth effects on household non-housing consumption, with the crowding-out effect weakening and the wealth effect increasing with the relaxation of property credit constraints. The threshold effect is heterogeneous among East, Central, West and Northeast. There are significant differences in the level of housing credit constraints across regions, which play a crucial role in the heterogeneous association between house prices and non-housing consumption. House price volatility and housing credit constraints are not a combination of factors that lead to low consumption; unaffordable house prices and increased household support burden are a combination of factors that lead to low consumption. It is suggested that stabilizing house prices remains an imperative and that property credit policies should be aligned with the development of the real estate market to promote consumption.