The article examines the factors, both external and internal, that contribute to the well-being of citizens. The studied review shows that life satisfaction is assessed differently by everyone, but is measured depending, for example, on life experience, economic status, place of residence, education, and more. Life satisfaction is not a biological phenomenon and depends on various factors that may change over time. The purpose of the work. The purpose of this work is to study the factors of life satisfaction. As the main hypothesis, the assumption is put forward that the number of households satisfied with their lives directly depends on the place of residence. Two more hypotheses have also, been put forward that satisfied households have the best living conditions than those who are not satisfied and do not necessarily have a high monetary income. Materials and methods. This research is carried out using such methods as descriptive statistics and data visualization, construction and analysis of logit and probit models, cluster data analysis and random forest algorithm. All the methods used show high efficiency. The final sample of data after the elimination of outliers was 30177 observations. The work uses panel data at the household level of RLMS-HSE, which allows taking into account the heterogeneity of households and significantly expands the possibilities for analysis. The results of the study. The results of the study fully confirm the main hypothesis and partially confirm the rest of the hypotheses put forward, and on their basis, possible recommendations for increasing the level of life satisfaction have been developed. Discussion and conclusion. The obtained results of this study can serve as practical tools for authorities to improve the quality of life in a particular region, as well as solving issues in the investment activities of the regions, but most importantly, they will help enterprises with a social orientation to correctly formulate the goals of their activities and adjust the efficiency assessment.