The term refers to residential developments characterized by a concentration of dwelling units within a limited geographical area. This form of housing typically involves structures like apartment buildings, condominiums, and townhouses, where multiple residences are located on a single plot of land. As an example, a multi-story apartment building with numerous individual units on a relatively small urban lot would be considered this type of housing.
This approach to residential construction addresses population growth and land scarcity in urban centers, optimizing land use and providing housing options for a diverse range of residents. Furthermore, it can contribute to reduced infrastructure costs per household, support public transportation accessibility, and foster vibrant, walkable communities. Historically, such developments have emerged as a response to urbanization and the increasing need for efficient and affordable housing solutions.