Housing remains a major problem for most, especially for the bottom billions; satisfaction on housing is one of the important indicators that reflect the societal wellbeing. This paper provides a meaning and understanding for the relationship between housing conditions and wellbeing; therefore, it evaluates the impact of housing conditions on the emotion, behaviour and psychological wellbeing of middle-income group in Malaysia. In fact, the housing conditions in this research include home size, housing features, as well as safety and security. Respondents of 390 were randomly selected from those middle-income houses in Kuala Lumpur and Johor Bahru (Skudai). The accumulated data were then analysed and descriptive statistics were used to interpret and evaluate the impact of housing condition on wellbeing. The finding showed small but significant positive relationship between housing conditions and psychological wellbeing. However, housing conditions is the contributing factors, which negatively affect the behaviour and attitude of middle-income group children. Overall, this research supports the critical link between good housing condition that is decent, safe, secure, and affordable and positive health outcome.