This study is to explore the housing problems and environment conditions perceived by residents in traditional houses in Suzhou, China. The empirical data is based on a questionnaire survey, which were from 100 residents in traditional area in Gusu area of Suzhou. In order to understand the traditional houses, on-the-spot investigation and literature review methods are adapted in this study. The main findings are as follows. Firstly, most of residents are middle-aged or older people, and their income is not high. Secondly, there are almost no cases of organizing independent workroom and storage room in their housing. Moreover, the main problems are mildew, theft, rats and cockroaches, etc. Finally, the satisfaction with the internal housing environment was appeared reasonable, but the external environment is unsatisfactory. Therefore, the external environment should be more considered in the Chinese traditional housing policy.