In this paper, the relationship between residential movement of old settlers in the inner area of Tokyo and tendency to reconstruction of their houses is discussed for the urban renewal and social vitalization. About 40% of population of inner area dwell for 20 years or more in the same area. They can be called the old settlers. 68% of them fave land and house of their own. 63% of them are small industrialists or merchants, who dwell in the inner area mainly for the reason of their business and accessibility. 43% of them have rebuilt their houses combined with small factories or shops after 1965 and 31% of them will rebuild their houses in near future. These reconstructions mean the urban renewal in the context that their small wooden houses area scrapped and small buildings of 4-6 stories are rebuilt on each lot. These reconstructions raise the level of each house and living condition.