With the continuous intensification of urbanization and the influenceof dual land ownership in China for a long time, more and more small propertyhouses have gradually appeared around some cities in our country andoccupied a certain market share. However, there are still many problems in thelegal sense of small property houses. In 2022, the “Interim Measures for theManagement of Rural Residential Land (Draft for Comment)” is open forcomment, and this amendment attaches more importance to supervision, and the management and use of rural residential land is also more in line with therequirements of new social and economic conditions. Since the 20th NationalCongress of the Communist Party of China, in the new stage of promoting thegreat rejuvenation of the Chinese nation with Chinese-style modernization,how can we better solve the existing problem of small property houses? Thispaper focuses on this problem, analyzes the problem of small property housesin China from the development and current situation of small property housesin China, relying on the Coase theorem of law and economics and the theoryof Hand Formula, and adopts cost-benefit analysis method. Combined withthe actual situation, the paper analyzes the problem of small property righthouse in law and law and economics, and finally obtains the optimization pathsuggestion to solve the problem of small property right house.