Anonymity in cities and a lack of architectural identity are some of the social-architectural challenges of our time, with profound consequences for urban life. Not only does architecture have a major impact on how we experience cities and buildings, it also has an impact on our health, wellbeing and behavior. The aim of this research is to find out how residential architecture can create identity and positively influence the mental and physical health of its inhabitants. This involves architectural design principles that can respond to users‘ conscious and subconscious needs to their living environment. An extensive literature search in the main areas of architectural psychology and active architecture provides insights into these issues. In addition, an analysis of case studies illustrates these issues and how they can be implemented spatially. The results show the great influence that architecture has on large parts of our lives. Among other things, it influences emotions, behavior patterns, health or the way people interact with each other. On this scientific basis, residential architecture can be designed to exert a positive influence on social, private and public life.