Aim To identify the extent to which homes and neighbourhoods of older community‐dwelling people are ‘supportive’. Method Cross‐sectional survey, in‐home observation and interviews involving 202 participants (75–79 years). Measures included SF‐36 health‐related quality of life and Late Life Function and Disability Instrument (LLFDI) scores, and self‐reported home usability, access, safety and neighbourhood. Associations between home and neighbourhood characteristics were assessed using χ2‐tests, t‐tests and Pearson correlations. Results Older people rated neighbourhood satisfaction highly (3.0 men, 3.2 women; 4 being the highest score). Many homes failed objective adaptability and safety ratings, particularly bathrooms (80% did not have a shower grab rail, 77% did not have non‐slip floors); 27% of homes scored ≥8 of 25 possible hazards. There were significant correlations between perceptions of housing and neighbourhood and SF‐36 and disability scores. Conclusion Many homes and neighbourhoods may not accommodate increased frailty or disability of older people into the future.