Public housing policies focus on the needs of low-income households. The level of residential satisfaction plays a key role in the assessment of government performance. This paper reviews researches on the residential satisfaction of inhabitants living in public houses and introduces relevant national practices. Based on data from Zhejiang, we found that the average residential satisfaction level is “relatively satisfactory” on the part of the inhabitants. They seem to be satisfied with the supply quantity but a little dissatisfied with the distribution fairness. The factor analysis suggests key factors that significantly affect the residential satisfaction. The study also shows that most inhabitants expect house quality improvement with big developers and are ready to accept the rising price for better quality.