This study examines the transformation in housing typology from low-rise to apartment buildings in the formal neighborhood of Kabul city. These formal neighborhoods were developed according to plans from 1978. The majority of these neighborhoods were designed with detached houses that had courtyards. Literature reviews, field visits, opinions of residents, and a planning organization provided data for this study. In this study, the transformation of housing in planned neighborhoods is analyzed in relation to their social and environmental impacts. Researchers determined how varying housing typologies affected residents’ health and quality of life in these planned neighborhoods. Initially, we assessed the physical characteristics of the study area and evaluated how much transformation volume is present in the study area. Second, we examined residents’ views of residential development and its impacts, as well as their daily lives. In order to identify the relationship between these two aspects, the study examined the characteristics of the area (variables) from the perspectives of privacy, natural light, shading, sound pollution, air pollution, and energy use. We used several criteria to evaluate the accuracy of the physical characteristics and the respondents’ opinions. Lastly, we provided some recommendations and solutions to improve the current situation.