The population proportion index is usually introduced to measure the level of urbanization, which is an important index to the national economy. The fast development of urbanization would inevitably cause the increase of the investment in real estate industry. Introducing the Granger Test of Causality analytical method, in this paper the relationship between the level of urbanization and the investment in real estate industry from 1986 to 2003 in China is analyzed. It reveals that both of them are on the stage of constant up - rising, and the correlation index of 0. 205 shows that the relationship between them is a mutual promoting causality.