The development of CATLAS model in 1983 provided an useful instrument in integrating urban transportation and land use. However, empirical applications embodied CATLAS structure are few. In this study, we modified the model according to the market structure of Taiwan urban housing. We spread the housing supply function of CATLAS into two parts: the housing stock function and the probability function of housing occupancy. A database manipulated from the Study of Transportation Demand in Kaohsiung Metropolitan Area and from the Housing Construction Plan ofKaohsiung City was used for empirical test. The results indicated that a regulation to commuting auto and/or increasing the level of right of way to commuting bus increases the real estate price in suburban area and a significant housing supply decreases the market price as expected. We conclude that the modified CATLAS model can reasonably reflect the Taiwan housing market structure.