This study examines the impact of spatial parameters on urban well-being by comparing the urban design and housing policies of Roosevelt Island in New York City and Bat Yam in the Tel Aviv metropolitan area, Israel. Despite their distinct political and cultural contexts, these cities exhibit similar urban design approaches that integrate physical well-being parameters—such as density, building height, open spaces, and walkability—alongside social well-being parameters including age distribution, income levels, and ethnic diversity. The research traces the evolution of affordable housing through various historical phases, including Urban Renewal, Community Development, and Neoliberal Urbanism, and explores how different residential ownership structures have influenced demographic shifts, gentrification, and neighborhood transformation over the past decades. Using a mixed-methods approach that combines historical analysis with spatial and demographic data, this study highlights the contrasting impacts of Roosevelt Island’s affordable housing program and Bat Yam’s state-led urban renewal policies. The results illustrate how distinct housing models affect community resilience, social stability, and overall urban well-being. By uncovering parallel narratives and extracting valuable insights, this analysis offers lessons for other cities navigating similar market-led pressures and policy shifts. The findings underscore the importance of understanding the interplay between spatial design, housing policies, and ownership structures in shaping the long-term sustainability and quality of life in urban neighborhoods.