The issue of identity is very complex and determining the factors influencing cultural identity is a key issue. Several scholars have studied the factors influencing cultural identity. However, relatively little attention has been paid to how spatial factors influence cultural identity. This paper takes a historical and cultural conservation block in Beijing, China, as the research area. This area includes eight lanes and is called Eight Lanes in North Xisi. The purpose of this paper is to demonstrate that spatial changes in living conditions, layout, size, architectural form, and decoration, etc. in the courtyards led to changes in the traditional culture of the courtyards, which ceased to reflect the original residential culture, which led to a decline in cultural identity. Spatial factors directly affected the residents’ cultural identification with harmonious courtyard culture. This view adds nuance to debates about cultural identity and the factors that influence it. From the perspective of cultural geography and by using structural equation modelling, we draw two main conclusions. First, the smaller proportion of public space (The term “space” as it is used in this paper is based on the understanding of humanistic geographers and refers to physical space; it does not acquire meaning and cultures.) is one main factor affecting residents’ identification with the harmonious residential culture of the case area. Second, the greater population density of the courtyards is another main factor affecting residents’ identification with the area’s harmonious residential culture.