Housing services is one of the most important family consumption expenditure. The measurement of owner occupied housing services has been paid attention to by Chinese scholars together with the western scholars and is always one of the most disputed issues in last several decades. There are three major approaches to the measurement of owner occupied housing services in CPI，which are User cost approach, Acquisitions approach and Payments approach. Among them, User cost approach is widely adopted by many countries. But in implementing of User cost approach , various problems may arise. This paper discusses the treatment of the special problems caused by housing as uniquely produced consumer durables; the treatment of Owner Occupied Housing as a composite good of structure and land; and some of the costs that are tied to home ownership such as mortgage interest costs, property taxes, and maintenance and renovation expenditures are also considered.
KEYWORDS：CPI, Owner Occupied Housing, User Cost Approach
