Ensuring that "each household has a dwelling" is a fundamental principle in the reform of the rural housing system. Pilot areas for residential reform have achieved positive outcomes in rural collective housing. This paper, based on a field study conducted in District D of Province G, utilizes a case study methodology and the Institutional Analysis and Development (IAD) framework to explore the driving mechanisms behind the implementation of collective housing in the pilot villages of District D. It comprehensively analyzes the roles of various stakeholders throughout the entire process of "planning, construction, distribution, and management", and evaluates the effectiveness of the initiative. The findings of the study indicate that collective housing construction can effectively alleviate land scarcity, meet the housing demands of rural residents, and enhance the overall rural environment. To ensure the successful implementation of collective housing projects, the government must assume a coordinating and guiding role, providing necessary financial and land support while streamlining the approval process. Village collectives should actively manage residential land and respect the preferences of farming households. Furthermore, pricing, allocation, and management strategies should be tailored to local conditions to ensure fairness and safeguard farmers' rights and interests. Policies should remain adaptable, taking into account regional differences in geography, society, and culture, and selectively incorporating collective housing models to achieve the goal of "each household having a dwelling."