In order to promote the urban residence for aged society in the future, it is important to create a residential land use in central urban area. The purpose of the paper is to evaluate the suitability of residential area based on the relationship between demand and supply of land in central urban area. Land value function models are used to show demand and supply of residential use. Using the estimated land value function models, we calculate the evaluation values of residential areas. As a result, we clarify the areas considered to be preferable for residential land use in central urban area of Tokushima city.