The 33-year-old reality TV star viewed the late legendary actress' luxury property in Bel Air, California, but decided it wasn't a "realistic choice" for her and her fiancé Kanye West.
Speaking in the April issue of VOGUE magazine, she said: "It was just so enchanting, with a garden with really pretty trellises and beautiful roses, but it wasn't realistic for me to purchase. It only had a one-car garage."
Elizabeth's stunning home, which she lived in from 1981 until her death in 2011, was auctioned off after she died from congestive heart failure three years ago, with proceeds going to her AIDS Foundation.
Meanwhile, Kim has been staying at her mother Kris Jenner's house with Kanye, 36, and their nine-month-old daughter North while they wait for renovations on their new mansion in Los Angeles to be completed.
The couple - who got engaged in October - were hoping to move into their new home at the end of last year but, after a few electrical glitches, their moving date has been pushed back until the summer.
It is believed the rapper and his beau splashed out $1.154 million on six luxury beds for their new pad and have also spent a staggering $500,000 on gold-plated toilets.
The pair are also keen to have a cinema room and a full-sized basketball court attached to their property, which will be kitted out with Swarovski accessories.