In general, the decay of the residential district has been considered a phenomenon of old towns. But now it has become a problem of new development areas too, which have been a cause of the decay of old town. This study aims to investigate the decay of the residential district in the new development area. The survey site was Dunsan, a town-intown of Daejeon metropolitan city. The findings were as follows (:) 1) even in the new development area, a high level of vacancy ratio was evident. ; 2) among the buildings above ground, 1st floor showed the highest vacancy ratio, which means the 1st floor was allotted to too many commercial facilities relative to the buying power size in this district. ; 3) there were many conversions in response to the decay of the district, from residential to commercial, and commercial to residential. ; and 4) the allocation of each type of conversion showed a spatial pattern.