The objectives of this paper are to clarify the influences of the activity room arrangement and how the downsizing the living unit affects the interaction of the children. The survey was conducted in two institutions of different support scales, and the effects of private and shared-rooms were compared. Methodologies used were behavioral observation, interviews and questionnaire survey. The results are: 1) Children in a small-scale support institution have a tendency to stay in many areas of the institution mentioned., 2) Children in a small-scale support institution can have their privacy and enjoy their time alone., 3) Children in a small-scale support institution can occupy various spaces such as “personal space” and “common space”., 4) There is less social interaction of handicap children in both institutions. Hence, many children tend to interact individually with a staff.