Using a novel dataset involving 450 respondents living in affordable apartments in urban Hanoi, this study examines the level of housing satisfaction and its correlates. We find that housing satisfaction is positively associated with household income but negatively related to education. Interestingly, the study finds that residents borrowing from banks to buy home are less satisfied with their home than their non-borrowing counterparts. We also find that respondents’ positive evaluation of their apartments, such as the design, construction quality and price of apartments, are strongly linked with housing satisfaction. In addition, the location of and environmental quality surrounding the housing area were found to be major factors affecting housing satisfaction.