Rapid urban growth in Nairobi city outstrips demand and provision of adequate housing. The demand for housing in an area is dependent on the satisfaction of the resident’s needs and wants. This paper examines the residential preferences of residents in three residential estates, low, medium, and high densities in Nairobi City, Kenya. Data was collected by use of questionnaires that were administered to 267 households. Primary data was collected for this study. The data collected was analysed using factor analysis and ordinal regression. Data was presented in the form of tables. The results indicate residential preferences among high, medium and low-density areas vary. The most preferred factors for low-density residents were safety and security, open spaces and facilities; while the residents in high-density areas preferred housing diversity, local employment and close proximity to the workplace. The least preferred factor for low-density residents was close proximity to work place since they own cars hence they are more willing to commute while high-density residents prioritize proximity to work to minimize transportation costs. Residential preferences varied by density, age, gender, education and years lived in an estate. Preference for safer neighbourhoods with open spaces and facilities was high for residents in low-density areas while preference for neighbourhoods with housing diversity, local employment and close proximity to workplaces was high among the residents in high-density estates. These insights underscore the importance of addressing the varied needs and preferences of different demographic groups in urban planning and housing policy to create more equitable and livable communities in Nairobi in order to limit housing mismatch. This study contributes to the planning studies by firming up empirical evidence from developing countries that have high populations in urban areas