Surplus or shortage of the housing is that the stock of the housing counts the result after comparing with family's amount, can demonstrate the supply of the market of regional housing and demand state.121.21% supplying of the housing of Taichung in 4th season of 2006. There is an acute housing surplus in Taichung, more than 70,000 supplying of the housing. It has a tremendous influence to the induced effect of national economic development and relevant industry, so requirement forecasting is an important work of managing in enterprises and government's operation. The main purpose of research lies in utilizing GM (1, N) to set up the prediction model of surplus or shortage of the housing. Take surplus or shortage of the housing of Taichung as an example, in accordance with GM (1,4) that this text builds Model simulation, only have it under six data, have good prediction ability. Keywords: GM(1,N) 、surplus or shortage of the housing 、Grey Prediction 、Grey Correlation