In highly-modified urban waterfront environments, birds’ habitats are often disturbed by human activities. Hangzhou City is located on a major bird migration corridor in East Asia, with a variety of habitats and a large population within the metropolitan area, where a large number of bird species breed and live. To determine the ecological niche requirements and microhabitat preferences of nesting bird species in urban environments, this study investigated habitat requirements and preferences of birds in highly-modified waterfront environments in Hangzhou during three seasons (winter, spring, summer) in 2022 and 2023. Field surveys were conducted to assess the proportions of different nesting habitat types and microhabitats utilised by bird communities. Data analysis showed that tree nests and building nests were the most common nesting habitat types, whereas arbour and grass were the most important microhabitats for birds’ foraging behaviour. The study also compared the observed foraging and nesting behaviour with the ecological niche requirements of bird species. Correlation between Euclidean distance to waterfronts and the number of birds is found by linear regression. It highlights the importance of considering the ecological niche requirements and microhabitat preferences of birds when planning and designing urban waterfronts and promoting urban ecological conservation.