This paper aims to contribute to understanding the role of the built environment in subjective well-being (SWB). The paper presents a new conceptual framework that integrates and links together: (a) different sets of objective and perceived neighborhood characteristics, (b) different perspectives on SWB – hedonic, life satisfaction, and eudaimonic, and (c) mediating factors that explain how neighborhood characteristics influence SWB. These mediating factors are personal relationships, leisure activities, health, and neighborhood impact on emotions and mood. SWB can be a new powerful tool for planning and designing livable built environments and for evaluating the social sustainability of planning policies.