With the increase of the number of vehicles on the road, the traffic density increases gradually. Consequently, the density variation will play an important impact on the traffic dynamic behaviors. Hence, a new lattice hydrodynamic model is constructed by considering the density delay effect concerning the difference between the delayed density and the current density about the leading site on two lanes. the linear stable condition involving the density delay effect is inferred via theory analysis for two-lane traffic flow, which reveals that the density delay effect broadens the stable region in two-lane system. Moreover, numerical simulation demonstrates that the density delay effect smooths traffic congestion and improves the stability of traffic flow under lane change on two lanes according to the density waves and the hysteresis loops.