Housing in Laguna Woods is dominated by Laguna Woods Village, a gated cooperative-style community developed in phases between 1964 and 1985. The village holds roughly 12,700 homes, mostly low-rise condominium buildings and attached residences spread across several mutual corporations, each with its own clubhouse and shared amenities. This structure means residents typically own shares in their mutual rather than holding a conventional fee-simple lot, and monthly fees cover much of the exterior maintenance and amenity access. A handful of smaller age-restricted communities round out the city's housing stock. The predominant building types are one- and two-bedroom condominium flats, garden-style units, and a limited number of detached single-level homes, all designed around an active-adult, low-maintenance lifestyle.

Laguna Woods Village is organized into several mutuals, each functioning as a distinct neighborhood with its own clubhouse, pool, and governing board. They wrap around the village's golf courses and central recreation facilities, with some sections set against the gentle hills of the Saddleback Valley. Beyond the village itself, the city's other age-restricted communities include smaller enclaves such as the adjacent retirement developments that cluster near Moulton Parkway and El Toro Road. The surrounding municipalities — Laguna Hills to the north and west, Lake Forest to the east, and Aliso Viejo to the south — provide the commercial corridors, medical centers, and community services that frame the city's borders.

Day-to-day life in Laguna Woods revolves around the resort-style amenities of Laguna Woods Village. Residents have access to multiple clubhouses, swimming pools, fitness and arts studios, a performing-arts venue, and hundreds of member-run clubs covering interests from hiking and golf to woodworking and theater. The village operates a 36-hole golf facility on roughly 154 acres, along with driving-range and practice facilities. A dedicated bus system circulates within the community, reflecting the village's self-contained design. Social life is organized around the club and activity calendar, and the city's quiet, landscaped streets contrast with the busier commercial corridors just outside its gates in Laguna Hills and Lake Forest.

Laguna Woods has no schools within its city limits because its housing is age-restricted to residents 55 and older. The city lies within the boundaries of the Saddleback Valley Unified School District, which serves neighboring Laguna Hills and Lake Forest as well as parts of Mission Viejo and Rancho Santa Margarita. Under the district's policy, school-age children who live with relatives in Laguna Woods may enroll in Saddleback Valley schools, which include a network of elementary, intermediate, and comprehensive high schools. Saddleback College in Mission Viejo provides nearby continuing-education and enrichment opportunities for adult residents.

Laguna Woods sits near the junction of Interstate 5 and El Toro Road, the primary freeway interchange serving the city along with Laguna Hills and Lake Forest. The I-5 corridor links the city northward to Irvine, Santa Ana, and Anaheim and southward to Mission Viejo and San Clemente. The regional toll-road network, including State Routes 73, 133, and 241, offers additional routes across South Orange County, while John Wayne Airport lies a short drive to the northwest. Within the village, an internal shuttle-bus system provides residents with transportation between homes, clubhouses, and shopping areas, complementing the limited local transit service in the surrounding area.

Recreation in Laguna Woods is anchored by the village's own facilities, including two 18-hole golf courses, swimming pools, tennis and pickleball courts, and miles of landscaped walking paths. The nearby Laguna Coast Wilderness Park and Aliso and Wood Canyons Wilderness Park open onto extensive trail systems in the San Joaquin Hills, while the beaches and coves of Laguna Beach are about ten minutes away. Saddleback College and the shopping and dining districts of Laguna Hills and Mission Viejo sit just outside the city. For day trips, Dana Point Harbor and the coastal communities of South Orange County are within easy reach.