Unlike in Western countries, land ownership in China is overwhelmingly vested in the state, and individuals cannot directly own private lands and build houses. Therefore, developers will contract the land to the government and build it into collective apartments. Against this backdrop, a different kind of multi-story, high-density self-built residential buildings is widespread in small towns along the southeast coast of China. These buildings were built between 1980 and 2000 by residents who acquired land-use rights from the government for compensation. The uniqueness of these buildings is what makes them incompatible with the most mainstream, government-led urban renewal model in China, resulting in a large area of dilapidated and aging areas. Zherong County, Ningde, Fujian Province, is a typical example town, with a large number of such self-built houses, known locally as Liu Houses. In this study, these residential areas were selected as typical research objects of “characteristics of residential small towns”. Combined with the property rights of the sample cases, the methods of diagram and quantitative analysis are used to summarize the causes of the three types of residential areas from the aspects of regional planning, land division, building construction, and renovation. In the early days, the planning of the Liu House was greatly influenced by the residents, and the construction and renovation of the building was led by the residents, which strengthened the diversity of the style. In the middle period, the government had relatively dominant control over the planning of Liu Houses, and supervision was conducted during the construction and renovation process, resulting in a relatively balanced power between residents and the government. In the later period, the houses were built and operated by the developer, and the residents no longer directly participated in the construction and renovation, so the unity of style was strengthened. At the same time, the study finds that, in the process of the formation of the style of the residential area, on the one hand, the property rights directly affect the style through its own physical land attributes, and on the other hand, it becomes the basis of the game between the government, residents, and the county environment through its own property rights, thus indirectly affecting the style. In conclusion, this paper may provide theoretical support and design reference for the renewal of the characteristic features of residential small towns.