A structural monitoring system based on cheap and wireless monitoring system is investigated in this paper. Due to low-cost and low power consumption, micro-electro-mechanical system (MEMS) is suitable for wireless monitoring and the use of MEMS and wireless communication can reduce system cost and simplify the installation for structural health monitoring. For system identification using wireless MEMS, a finite element (FE) model updating method through correlation with the initial analytical model of the structure to the measured one is used. The system identification using wireless MEMS is evaluated experimentally using a three storey frame model. Identification results are compared to ones using data measured from traditional accelerometers and results indicate that the system identification using wireless MEMS estimates system parameters with reasonable accuracy. Another smart sensor considered in this paper for structural health monitoring is Lead Zirconate Titanate (PZT) which is a type of piezoelectric material. PZT patches have been applied for the health monitoring of structures owing to their simultaneous sensing/actuating capability. In this paper, the system identification for building structures by using PZT patches functioning as sensor only is presented. The FE model updating method is applied with the experimental data obtained using PZT patches, and the results are compared to ones obtained using wireless MEMS system. Results indicate that sensing by PZT patches yields reliable system identification results even though limited information is available.