Korean Government has promoted the development of the country and mostly focused on metropolitan regions and industrial hubs since 1960s. That has worked in some extents, but local small cities have been relatively excepted in economic and social developments. Those cities have had the spreading of deteriorating housing area as the two factors have declined. Recently the Korean Government and academics have tried to improve the residential condition in those area. It is hard to develop pin-pointing policies due to the lack of the analysis on those areas. This study tries to understand the current status of deteriorated housing areas in local small cities and suggest alternative improvements. By analyzing data from literatures and local governments, this study could find that the populations size of city is strongly related with the extent of deterioration of housing area. The structures, facilities, and sizes of housing are getting worse as the population size of cities become smaller. The deteriorated housing area’s conditions vary with the number of houses and infrastructure conditions. Withe the understanding of the current status, this study suggests the alternatives for the deteriorated housing area as following: developing affordable housing supply and repair model, increasing public participation and support system, and suggesting the total approaching system.