Abstract
This study aims at exploring the residential location planning to realize an urban spatial configuration that improves Quality Of Life (QOL) within the context of the population decline and economic saturation in 21th century in Japan. A QOL index measured by the Quality Adjusted Life Year is introduced. A mathematical programming was employed to maximize QOL under the economic and equity constraints. The framework was applied in order to identify the planned retreat and re-concentration areas by the index for social cost effectiveness of QOL derived from the given maximization problem. The case study of a rural small-sized city shows that the clustered urban spatial configuration is appropriate in terms of social cost effectiveness of QOL although QOL in the suburban areas is higher than that of in the city center.