Over the last two decades, Istanbul’s socio-cultural and urban identities have been transforming radically. Turkey’s globalization, internationalization, and rapid flow of information have played a significant role in changing this grand old city and her people. As in the rest of the world, the multidimensional outcomes of this transformation have manifested in peculiarities of activity patterns, behavioral relationships, and social and cultural norms, as well as architectural and urban patterns. This rapid economic and social change demands continual redefinition of urbanization and housing concerns. Especially for newly emerging urban areas, it is essential to define what a “good quality environment” means to users today. Istanbul traditionally is described either as a bridge between East and West, Islam and secularism, or an arena of strife between these. In reality, the city is much more complex and confusing than the clichés suggest. It is a place in which a struggle for the spirit of the city and the identity of its residents has been taking place. “Istanbulites” are insisting on an Istanbul transformed by globalization. Consequently, the city has been developing with intense heterogeneity, especially in its urban housing, as never before. Istanbul’s recent housing projects, representing new ways to organize social and cultural differences, might be read as creating segregation and producing housing inequalities while transforming the character of public life in undesirable ways. Do users really want this kind of spatial isolation? To know, it is necessary to pinpoint their objectives—physical, social, environmental—and define a “good quality” environment for urban housing. Creating quality living environments requires both physical/objective and psychological/personal input. In conclusion, we believe it Based on these above arguments, this paper will investigate impacts of the globalization process in the city of Istanbul regarding to “housing preferences” and “quality of life”. We aim to analyze and discuss the transformation in the new housing developments in Istanbul in the context of quality of life issues. This paper is mainly based on ongoing research, and the observations, media and literature analysis of the authors that have had experience on the housing subject as an architect, researcher and educator. In the paper, an introduction part will examine the latest housing trends in Istanbul with the subjects of economical, cultural and political conditions that Turkey is already in and related. Second part includes the conceptual framework, which explores the definition of “life quality” and components, and also the inter-relationships among these factors. New residential patterns catering to the upper classes, which have been emerging in Istanbul since 1980 will be considered. We will, therefore, discuss the emerging patterns of social and cultural differentiation in Istanbul through the examples of the exclusive suburbs in the third part. At the end, we argue that recent housing projects and trends represent new forms of organizing social and cultural differences, and could be read as urban forms, which create segregation and reproduce inequalities while transforming the character of public life.