Abstract: The urgent problem of growing housing demand of urban population and solution of environmental crises of the XXI century, testifies the need to apply the local knowledge in creating the economically sustainable and cultural sensitive architecture and urban environment like never before. Search for a stable solution requires not only a clear understanding of the needs of current generation, but also grasping the experience of the past. This problem is particularly relevant in the cities that experience rapid urbanization, although culture and tradition also remain important. The object of this research is the different types of residential buildings in Addis Ababa. The article provides a brief historical overview of housing policy and examines the typology of housing architecture in Addis Ababa. In the course of this research, the author analyzed and generalized the documents and resolutions on the urban development policy and land management, as well as employed the methods of analysis, systematization, and comparison of the Russian experience of housing development. The examination of historical prerequisites of development of the city revealed the role of sociopolitical and socioeconomic factors in evolution of the typology of its architecture. The author's contribution consists in the analysis and determination of architectural types of residential buildings of the city. The main conclusion lies in realization of the importance of implementation of the principles of folk architecture for sustainable housing construction in the XXI century, while preserving cultural integrity of the city.