The aim of this study is to evaluate the effects of macro-scale development decisions in Turkey on the spatial and social patterns of rural settlements. These decisions are examined to determine the changes caused by new residential areas created by the TOKI Tarimkoy implementations on the quality of life of villagers. The newly produced village houses located in Karyagmaz village of Balikesir province were evaluated in terms of space use quality produced to meet the rural housing in the Balikesir region (Marmara region). The method of this study consists of three stages. Firstly, to identify the social and spatial problems caused by acceptance of the rural population into a city population under Law no. 6360 were examined through observation, semi-structured interviews and mapping in the study area. Secondly, the criteria of spatial utilization quality for rural housing were determined based on literature review and physical environment in Karyagmaz village was analyzed based on these criteria. Finally, social structural data from the village were evaluated in terms of capability approach by Amartya Sen (1979) to assess quality of life of individuals. It has been observed that the scale of rural settlements changed in the process of transformation from rural settlements to urban neighborhoods and that the relationship between nature and humans has been adversely changed.