Urbanization, as a worldwide phenomenon, has created enormous housing shortages for low-income families. A variety of programs may be required to meet the housing needs of low-income families in a given society, however, that government involvement in the construction of housing units will be necessary in most countries in order to bridge the gap between the demand and the private supply of standard low-cost housing units. The private market recognizes the importance of government assistance in the housing construction field. The United States has emerged in order to find methods and procedures for large-scale production of low-cost housing. Despite these new efforts, surprisingly little is known about the social and psychological implications of large-scale-high density housing. Although several investigations suggest that changes in the design of housing and related facilities may have substantial social and psychological implications, the evidence is not conclusive. Several studies find important relationships between design features of the housing environment such as streets, courtyards, play areas, building arrangements, and interior space, and social psychological factors such as self-esteem, intrafamily relations, friendship patterns and group participation.