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The purpose of this paper was to investigate housing satisfaction in a traditional neighborhood of Izmit, Turkey. According to this purpose, it was investigated whether the perceived living conditions (PLC) were mediating the effect on participants’ general housing satisfaction caused by satisfaction with the perceived quality of facilities (FQP), satisfaction with performance of local authorities (LA), satisfaction with social relations (SR) and satisfaction with physical surrounding (PS) in the Topçular neighborhood of Izmit District in Kocaeli, Turkey.

According to the hypotheses developed within the framework of the theoretical model, by using structural equation modeling (SEM), first, the direct relations between the variables were tested (PLC → overall housing satisfaction (OHS); PS, SR, LA → PLC; FQP → LA), then the indirect relationships between the variables were analyzed with the mediated role of OHS (PS, SR, LA → OHS → PLC).

The results show that all factors affected the OHS through the PLC. In conclusion, as the living conditions of the individual living in the neighborhood improve, the conditions take an active role in the relationship between the OHS and the satisfaction with the other relevant factors in the neighborhood, namely, PS, SR and performance of LA. In this relationship, it is seen that the satisfaction with PS has a negative effect, while the satisfaction with SR and satisfaction with the performance of LA have positive effects.

The study was applied only to Turkey’s Izmit Province. Research may also be applied to other cities apart from those in Turkey. A small sample was also used in the study. Reaching a wider sampling for SEM can lead to different results.

Planners and designers should consider satisfaction – including various factors involved in planning, designing and refurbishing the neighborhoods – as the most important design data.

The results of this study show that living conditions had an active role in the relationship between OHS and certain factors in the neighborhood: satisfaction with PS, SR and performance of LA. This study offers a framework to LA such as policymakers and urban planners to develop relevant and effective strategies and to improve dissatisfactory conditions in new and peripheral areas.

The originality of the paper is based on revealing the factors affecting the housing satisfaction of people living in the province of Izmit. This study offers a framework to LA such as policymakers and urban planners to develop relevant and effective strategies and to improve dissatisfactory conditions in new and peripheral areas.