Residence of the elderly is analyzed in this work. Experiences of the developed world in this field can be extremely beneficial to the housing policy in Serbia. The elderly are facing serious facility shortages for living compared to the actual demand. The subject-matter of this work is to carry out research into the institutional forms of taking up residence of the elderly in Serbia and France, since France is a welfare state. By analyzing French pattern, some useful recommendations can be found for the development of the Serbian pattern.