Dhaka is regarded as a thriving megacity of South Asia. The key challenges that the bustling hub is confronted with are land scarcity and the growing population. With limited land supply, the city is copping to accommodate its ever-growing population through two development strategies, namely densification and vertical expansion. Densification is regarded as an effective tool in guiding the urbanization process, while vertical expansion can be considered as a complementary part of this strategy. When it comes to application in an urban environment as a strategy, the subjective attributes of density need to be taken into consideration along with its objective aspects. As the concept of crowdedness differs generally among people belonging to different cultures, statuses, ethnicity, and geographic location, the livable density standard is also supposed to vary accordingly. The concept of habitable density for any community is profoundly related to the various aspects of social sustainability. Since densification has been taking place in Dhaka without any guidelines, the livability conditions with regards to the social sustainability of the city dwellers are largely compromised. Therefore, there is an urgent need to assess the sustainability of the residential areas of Dhaka, which have been developing as a by-product of the unguided densification process taking place over the recent decades.