This study investigates the effects of housing quality, neighborhood quality, and the interaction of housing quality and neighborhood quality on psychological well-being for a sample of 5,605 European adults. This sample is from the Large Analysis and Review of housing and health Status conducted by the World Health Organization. Interviews and questionnaires were used to collect data on housing circumstances, the state of the surrounding environment, and individual health and well-being. Multilevel random coefficient modeling was used to statistically analyze the main and interactive effects of housing quality and neighborhood quality on psychological well-being. Socioeconomic status, gender, marital status, and employment status were used as statistical controls. Results of this study suggest that poor housing quality and poor neighborhood quality can contribute to lower psychological well-being. Furthermore, it appears that good neighborhood quality can buffer against the negative effects of poor housing quality on psychological well-being. These results fill in a gap in research concerning the ability of neighborhood quality to amplify or attenuate housing quality and have implications for designers, planners, and policy makers.