The purpose of this study is to improve the residential environment of the deteriorated apartment in Gyeongju. We survey the characteristics of each of the seven buildings in the subject housing, the renovations of each unit and the overall environment, and the residents' perceptions. The findings show that the residents of the deteriorated apartment in Gyeongju are generally satisfied with the current residential environment and that they prefer the reconstruction to improve their environment. The results also include that the residents feel burdened with the reconstruction because it is difficult to receive the approval from the local government and it is highly costly from the view points of the residents. It is recommendable to establish the logical judging criteria on the reconstruction. reuse, or renovation of the deteriorated apartment in a small local city such as Gyeongju and to offer the objective and specific programs on the basis of the established criteria for the improvement of the residential environment in the future.