This paper studies on the way of living in traditional houses, those are called MACHIYA and NAGAYA in Kyoto. How inhabitants have managed to realise housing needs and improved their houses according to the change of a family make-up and life style with jeneration are cleared. In the improvement of traditional houses, some rules are kept by inhabitants as follows. 1 Basic plan of MACHIYA and NAGAYA with Tori-Niwa is followed. 2 Little coutyard called TUBO-NIWA is kept even when they extend their houses. 3 Tipical way of living in MACHIYA and NAGAYA to use a room two ways is succeded.