To develop a Decision Support System (DSS) for deciding the fate of old residential buildings, whether they should be demolished or repurposed, this research evaluates three alternatives: Material Reuse, Major Renovation, and Demolition, using sixteen factors related to technical, environmental, economic, and social aspects, organized into sustainability pillars. To assess and prioritize the alternatives, the study employs the Choosing by Advantages (CBA) model, a Multicriteria Decision Making (MCDM) process. This model helps in systematically evaluating the benefits of each option based on the identified factors. In this research, the decision-making model was applied to a hypothetical building called Rutherford House, a historical structure built in 1908 and located in Banff, Alberta, Canada. The result demonstrates that material reuse is advantageous in preserving historical elements and reducing new construction materials; however, potential weaknesses in old materials hinder its suitability. Demolition incurs high costs, raises concerns about historical and architectural losses, and receives the lowest advantage score. The most favorable option is major renovation, which extensively renovates the existing structure while maintaining its original design, preserving historical significance, and addressing structural issues. This option presents a well-balanced approach with significant advantages and relatively lower costs. The study highlights adaptive reuse as an effective and environmentally friendly approach, extending building lifespan, reducing the construction industry’s carbon footprint, and preserving cultural and architectural significance. This approach aligns with values such as history, identity, and sustainable economic development. Based on the evaluation, the study recommends preserving the old residential building through major renovation as the preferred option. This alternative considers cultural significance, social attachment, and potential cost savings, offering substantial benefits in sustainability, environmental impact, and cultural heritage preservation. Additional maintenance might be required, but the benefits outweigh the drawbacks.