Based on the existing researches, this paper conducts theoretical analysis on the relationship between urbanization level and real estate price under inflation. By using the related yearly data of Jiangxi from 1996 to 2012, it carries out correlation analysis, unit root test and Johansen cointegration test, and finally does an empirical analysis on their relationship using Granger causal test method. It finds that there is a long-term balanced relationship between urbanization level and real estate price and they form mutual Granger reasons for each other. Finally, it provides suggestions about government policies on the coordinated development of urbanization level and real estate price given the practical situations in Jiangxi.