This study investigates the effect of housing relocation policies on energy consumption by simulating household relocation choice behaviors and consumption behaviors. Energy consumption is estimated based on consumption behaviors. Three types of policy are analyzed: the relocation subsidy policy, the suburban residence taxation policy, and the combination of subsidy and taxation policy. The results show that all policies have influence on housing relocation choice and consumption behaviors. The number of households in a given area would increase by two percent under the relocation subsidy policy. However, this type of policy contributes to greater demand of general goods, land, and more energy consumption. A suburban residence taxation policy shows very limited effect on housing relocation choice behaviors, with only a 0.1% increase of households in the designated area. However, this policy shows strong effect on energy reduction due to shorter trip time and less demand of car trips and land. A combination of subsidy policy and suburban residence taxation policy attracts 2.2% of households move to the city center area. Energy consumption increases as consumption of general goods increases. (C) 2016 Elsevier Ltd. All rights reserved.