Considering settlement characteristics and population dynamics together over multiple spatio-temporal scales, the present study analyzes the spatial distribution of sparse settlements and population surrounding a large city in Southern Europe (Athens, Greece), in relation with long-term metropolitan growth and recent economic downturns. Results of the analysis identify regional-scale processes of urban compaction during economic expansion (2000s) with incorporation of scattered settlements in a high-density urban fabric, and moderate urban dispersion affecting low-density, peripheral areas in the subsequent period of recession (2010s). However, more heterogeneous dynamics were observed at the local scale. With economic expansion, a slight i...