The invention discloses a vertical displacement automatic balancing method for reverse demolition of a building. The vertical displacement automatic balancing method comprises the steps that displacement monitoring systems are installed at each position in the top floor of a load-bearing column of the building to automatically monitor displacement of each moment, after the load-bearing column is cut off, displacement data automatically judge required displacement of a jack below the load-bearing column through a control system, the displacement is transmitted to a hydraulic system of the jack,the jack is automatically lifted, or when the load-bearing column drops in an emergency situation, the displacement monitoring systems are fed back to the control system in time, then the displacement is transmitted to the jack, the jack is automatically lifted, and the building is kept in balance. According to the vertical displacement automatic balancing method, vertical whole displacement of the building in the process of reverse demolition of the building can be automatically and accurately controlled in a mechanized mode, and the safety and stability of the building is ensured.