Steel framed houses consist of wall and floor panels made of structural boards and light-gauge cold-formed steel frames that are fastened with drilling screws. We had already made clear that the conventional shear walls show poor ductility and low damping ability and we developed a new type of shear wall with a few built-in friction-type dampers. Through the static loading tests results, we confirmed that this wall exhibits high energy absorbing capacity as well as high ductility. In this study, we first give general information on conventional and newly developed shear walls. Then, an analytical study to evaluate ductility reduction factor of the buildings designed using this wall will be conducted by Incremental Dynamic Analysis (IDA). Finally, we confirm that this wall has higher effects on suppressing seismic response compared with conventional shear walls.