Building Materials
Is the least important factor, because in modern days, building materials can be imported into a country. But more important in olden days.

 
Protection
If you live in protected area such as a highland, you would be prepared for attacks, and safer from natural disasters, such as floods and tsunamis

 
Shelter
You need a good amount of space and an area with good climate. Which can protect yourself from harsh weathers and keeping warm.

 
Economic Activities
In modern days, economy is very important, because money can help provide shelter, food, water, etc.

 
Risk of Flooding
Flooding can damage houses, and its surrounding environments, so choosing a site is very important for a settlement.

 
Supply of Fuel
Cars, busses, planes, etc. All require fuel. Without fuel transportation would be less convienient. Feul is also needed for cooking and warmth

 
Proximity to a River
Must have a bridge in order for convienence. Also boats can help transport people to different sides.

 
Flat Land
Flat land would be more convienient for agriculture, transportations, etc.

 
Water Supply
Is the most important factor because humans require to drink lot's of water on a daily basis, in order to live.