Firstly, development status of rural urbanization in Luoyang City is introduced. A total of 6 indices are selected, such as total households in townships, total population in townships, total grain output, financial budget income, balance of savings deposits at the end of the year, and per capita net income of farmers. According to the data in 2009 Luoyang Statistical Yearbook, cluster analysis of 53 designated towns is carried out. Result shows that 53 designated towns are divided into 4 types according to the economic strength. Problems in the development of rural urbanization in Luoyang City are analyzed, such as imperfect management system, lack of effective economic measures, irrational town layout, unbalanced regional development, inadequate urban infrastructure, limited population absorption, lack of main industry small towns, insufficient development capital, serious environmental pollution, and great pressure on environmental protection of towns. Countermeasures for the development of rural urbanization in Luoyang City are put forward. For instance, judging from the dynamic mechanism, Luoyang City should gradually change its dynamic mechanism of urbanization into socialist market system. Judging from the scale of town, Luoyang City should actively develop the central city and cultivate strong counties and key towns. Judging from the function of town, Luoyang should select a special urban development mode with its own characteristics for its development of rural urbanization.