Housing is one of the most important public priorities affecting urban development and therefore has a significant impact on sustainable development. A housing project can be regarded as sustainable only when all the dimensions of sustainability (environmental, economic, and social) are dealt with. The aim of the present article is to propose an integrated, hierarchy-based, multiple-criteria approach for the sustainability assessment of new residential development projects, which is achieved through the accomplishment of three objectives. First, this paper proposes an original framework for a multiple-criteria assessment of new residential projects. Second, the proposed methodology is demonstrated in the assessment of nine residential development projects in Lithuania, Latvia, and Estonia according to a hierarchical system of 53 sustainability indicators developed specifically for the Baltic context. Finally, based on the research results, the paper proposes recommendations to stakeholders for enhancing the performance of new residential projects according to the principles of sustainability. The proposed sustainability assessment approach is not limited to the Baltic States and can also be used in other countries, applying the adapted sustainability assessment indicators.