Utilizing a large-scale public health survey in Sweden, this paper analyzes the relationship between the fraction of elderly above the age of 80 who live in various tenure forms, and their social engagement.  Social engagement is a measure of both social interaction with others, and overall engagement in society. This measure has an established relationship with mental and physical health, even as the causal mechanism are still understudied.  Across 130 municipalities, we find that a higher fraction of elderly living in elderly housing is associated with a lower fraction of elderly classified as having a low level of social engagement. We also find that a higher fraction of elderly living in single-family houses is associated with a higher fraction of elderly classified as having a low level of social engagement. The results support that closer proximity to neighbors, and potentially the engagement offered through services in elderly care, increases overall social engagement among the elderly, thereby also assumably promoting better mental and physical health. The findings can inform housing policies towards elderly populations.