Effective residence planning is crucial to encourage sustainable housing development. Residents in densely populated cities inevitably have negative residential experiences caused by compact land use. Still, this situation is improvable through optimizing the physical environment or increasing service facilities that cater to dwellers’ residential preferences. Therefore, understanding the factors impacting residential satisfaction in high-population metropolitan areas is essential mainly. This study surveyed the citizens’ residential environment and satisfaction in dense urban residential areas. Results of this survey indicate that 13 environmental factors significantly impact residential evaluation. Among them, improving ventilation, privacy, and property maintenance can effectively address the adverse effects of densely populated communities. Additionally, neighborhoods or amenities could further impact younger respondents’ residential evaluation. Elderly citizens place high importance on the quality of their indoor living environment. Green space could promote the residential satisfaction of young and more senior citizens. Environmental factors can significantly affect the residential satisfaction of citizens across all age groups with their homes. As a result, real estate planners should provide a range of dwelling unit designs to support housing development. Real estate planners can better understand the needs of potential clients by considering the housing preferences of individuals across different age groups and the surrounding neighborhood. The indoor or outdoor environment might be adjusted to meet households’ demands, while non-essential factors could be omitted to cut expenses. This study might aid in the sound development of dwellings.