Sustainability principles should be incorporated into all decision-making stages for residential construction projects to ensure maximum revenue while maintaining essential residential building services. This study identifies and analyzes the critical success factors (CSFs) necessary for implementing agile project management (APM) in residential construction projects. Data were collected from 120 professionals in the Nigerian construction industry through questionnaire surveys to understand the implementation of APM. The CSFs were obtained from previous research and analyzed within the specific context of the Nigerian construction industry through questionnaire surveys. The CSFs were grouped into two main categories using exploratory factor analysis: dynamic project optimization and agile project foundations. The model for the CSFs was developed using partial least squares structural equation modeling. The study found that the dynamic project optimization element had the most significant impact on the model, highlighting its importance as a key CSF in APM implementation. These results support the adoption of APM within Nigeria’s construction industry as stakeholders and professionals seek effective strategies to reduce costs and improve sustainability.