The Machiya, a traditional wooden house in the city of Kyoto, were demolished by thousands up to the nineties because of the lack of modern comfort these houses offer. In the last twenty years the consciousness of cultural heritage has grown and the city realizes that these old houses must have had qualities new stacked dwellings never can offer. Research programs have been started up to understand these special qualities, to learn from them, to help the existing Machiya to survive and to use the tradition for the design of new residential buildings types as well. In 2011 I was offered the opportunity to live in a Machiya and to participate in a Machiya research program. In the article I summarize the origin of the Machiya, the decline and the revival. I explain my research method and focus on the qualities of these houses. To live in a Machiya means to undergo life in a dwelling condition of ambiguity. You are inside and outside at the same moment. I will discuss some profound conclusions and transformations to new architecture which are interesting for other cultures as well. Once understood – there a several possibilities to give these houses new life.