T The number of elderly in Indonesia is predicted to skyrocket in the upcoming years.Their physical and cognitive abilities will decline as they age. The provision ofhousing that pays attention to the needs of the elderly is still laburious to find andhas not been given special attention in Indonesia. The purpose of this study is toidentify housing characteristics based on the preferences of the elderly, especiallyretired elderly who are assumed to be financially more empowered than the elderlyin general. Conceptually, housing characteristics contain physical environment,psychological environment, and social environment. The sample is 100 retiredelderly aged 60 years above and living in Jakarta, Bogor, and Depok as cities withthe majority of the population consisting of people from the older generation. Theresearch design used a questionnaire survey method. The analysis technique usessecond-order confirmatory factor analysis. The results showed housingcharacteristics that retired elderly deemed significant comprise of the proximity tohealth facilities, commercial facilities, recreational facilities, public transportation,and open space (physical environment); ease of finding directions andenvironmental orientation, easy access to outdoor seats (psychologicalenvironment); the diversity of social activities, the diversity of age structures andprofessions of the residents as well as the availability of social institutions (socialenvironment). Hence, these indicators need to be considered in housing planning tomeet the needs of the elderly