Most people have experienced a crucial moment of decision during their life course, that of whether to stay over or to move out of their house and neighbourhood. Residential mobility refers to mobility thoughts and intentions, as well as the actual moving behaviours among the residents, which are often triggered by feelings of dissatisfactions, state of disequilibrium or mismatch between the present housing needs and consumption, and the desired housing preferences. Residential mobility is postulated to be influenced by many factors, notably family life cycle (infant to elderly phase), tenure ownership (house owner or renter), housing profile (dwelling features) and quality of the neighbourhood. There is limited study on tenure ownership and factors of neighbourhood quality that can affect mobility decision and residential mobility behaviour. Hence, this study examines mobility decisions based on tenure ownership and neighbourhood quality including physical, social and economic attributes among residents of housing schemes in Penang Island, Malaysia. A questionnaire survey of 717 respondents living in low, medium and high cost housing in the study area revealed that dwelling features, neighbourhood facilities, environment, social interaction and attachment are the major considerations and preferences affecting residential mobility behaviours among residents. The study findings provide insights and guidance on planning for better neighbourhoods to satisfy residents’ needs and enhance quality of life.