Urban consolidation has become an urban planning and development paradox. One of its recurrent criticisms relates to housing affordability and the role of planning interventions such as compact city policies. Indonesia has adopted the compact city concept in recent years, but there is little knowledge of density's effects. This paper examines whether housing and transport affordability is associated with urban compaction in three Indonesian metropolises. Twenty-two municipalities within Jakarta, Bandung, and the Medan metropolitan areas were studied. National socio-economic survey data were used to measure affordability, while census and statistical data are used to describe the current state of urban compactness in each municipality. Data envelopment analysis (DEA) methods were applied to provide an objective calculation and benchmarking process to evaluate and perform the inter-city comparison of the combined housing and transport affordability. To discover the relationship between affordability and urban compaction this study uses Tobit regression analysis. The results support the argument that urban compaction has a potential to improve housing affordability, particularly when transport and housing costs are combined. The research sheds new light on the link between compact urban form and housing affordability in the developing countries context.