<p>Despite the fact that housing represents a fundamental unit of urban systems where people spend much of their daily lives, little attention has been paid to the structural relationship between residential environments and subjective well-being. In this study, structural equation modeling was used to analyze the structural relationship between residential environment and subjective well-being, controlling for the effects of demographic factors and personality traits. An online survey of 1,001 adult residents in Japan measured subjective well-being and assessed residential environments, consisting of the thermal, acoustic, light, hygiene, safety, and security. The model revealed an important pathway from the residential environment to subjective well-being mediated by life-domain satisfaction. The six environmental components described above all contributed substantially to the latent residential environment construct, with safety and hygiene showing the highest loadings. This study contributes to a more fundamental understanding of the structural relationship between residential environments and subjective well-being. It also provides insights into designing better residential environments that enable everyone to live in healthier and more supportive spaces—an endeavor that is crucial for promoting sustainable and inclusive urban development, particularly in terms of enhancing overall quality of life.</p>