The rapid acceleration of societal change has subjected contemporary individuals to prolonged periods of diverse pressures, leading to substantial psychological strain, resulting in anxiety, depression, and compromised mental well-being. Within this context, the home has evolved into a vital refuge for modern individuals, offering both physical and psychological respite. Through experimental intervention, this study examines two distinct residential groups: those adhering to traditional housing and those residing in characteristic folk houses, specifically Gannan Hakka architecture. Analysing the psychological state of contemporary individuals and integrating Gannan Hakka architectural elements into folk house design through a psychologically informed approach, this research aims to enhance residents’ aesthetic experiences and alleviate psychological distress. The study involved 120 volunteers with varying psychological stress levels, categorised into characteristic and traditional folk house groups. Psychological assessments evaluated stress, self-efficacy, and quality of life. Findings reveal significantly improved psychological well-being, self-efficacy, and quality of life among the characteristic residential group, affirming the benefits of Gannan Hakka architecture integration. This research underscores the importance of addressing modern individuals’ environmental needs and proposes the integration of Gannan Hakka cultural elements into residential design to enhance well-being.Contribution: This study demonstrates the application of Hakka culture in contemporary housing profoundly influences residents’ lives, enabling both relaxation and a deeper cultural connection. This integration facilitates a comprehensive understanding of Hakka culture, promoting its preservation. Notably recognised for hospitality and diligence, Hakka culture enhances individuals’ appreciation of tradition, fostering physical and mental rejuvenation. These findings offer valuable insights for practical theology scholars and practitioners exploring the impact of religious aspects on modern residential design from a psychological perspective.