Abstract Based on the facts of human capital and urbanization and the cost benefit analysis of highly educated population urbanization, this article adopts the timing data from 1991 to 2014 and carries out an empirical test on the inner mechanism of the highly educated human capital, urbanization, personal income and housing price. The study finds that highly educated population share has a positive and steady correlation with urbanization and housing price, but a negative correlation with actual personal income. Therefore, the highly educated human capital accumulation bears the cost benefit contradiction of self-citizenization while effectively promoting the development of urbanization. In order to give full play to the role of highly educated human capital in the inclusive urbanization, proper arrangement should be made in the income growth of highly educated population and its housing service mechanism, so as to realize the complete urbanization as soon as possible.