The success of compact development depends in part on accurately gauging its public demand and understanding residents’ preferences towards it. Drawing upon a stated-preference survey in the Wasatch Front region in Utah, this paper estimates preferences for compact, walkable and transit-friendly neighbourhoods through the application of a discrete choice experiment. Results derived from a latent class analysis reveal significant heterogeneity in residential location preferences. Overall, strong preferences for compact development are more likely to occur among families with fewer school-age children, low-income and renter-occupied households, and those who appreciate social heterogeneity and have less desire for privacy. These tastes are also associated with personal preferences for walking and biking and supportive opinions toward environmental protection and urban growth boundary policies. By comparing respondents’ preferences to their actual residential and travel choices in two contrasting subregions, we further address the complex relationships between environment, preferences, residential locations and travel.