settlement
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housing estate
A group of residential houses, often located on the edge of a city and built in a similar style at the same time.
Wir sind in eine ruhige Siedlung am Stadtrand gezogen.
We moved to a quiet housing estate on the outskirts of the city.
The word 'Siedlung' (settlement) is derived from the verb 'siedeln' (to settle). The ending '-ung' forms a noun from the verb and is always feminine in German.
Viele Familien siedelten in den neuen Vororten.
Many families settled in the new suburbs.
The most common meaning (residential houses) is often combined with adjectives like 'neu' (new), 'modern' (modern), or 'ruhig' (quiet). You typically live 'in einer Siedlung' (in a housing estate).
Sie leben in einer kleinen Siedlung mit viel Grünfläche.
They live in a small housing estate with lots of green space.
When there is talk of 'Archäologen' (archaeologists), 'Ausgrabungen' (excavations), 'Überresten' (remains), or historical periods such as 'römisch' (Roman) or 'steinzeitlich' (Stone Age), it always refers to a historical settlement.
Bei den Bauarbeiten stieß man auf eine alte germanische Siedlung.
During the construction work, they came across an old Germanic settlement.
The meaning 'process of settling' is rare and is mainly used in historical or academic texts. It is unusual in everyday language.
Die Siedlung der ersten Kolonisten war mit vielen Gefahren verbunden.
The settlement of the first colonists was associated with many dangers.
city
'die Stadt' and 'die Siedlung' both have to do with built-up places where people live. 'Stadt' means a larger place with many streets, houses, and usually various facilities. 'Siedlung' tends to mean a smaller group of residential houses, often on the edge of a city and often built in a similar style. The words can be confused because a housing estate can be part of a city. If you mean the whole large place, you say 'Stadt'. If you mean a specific residential area, 'Siedlung' fits better.
Hinter dem Bahnhof beginnt eine ruhige Siedlung mit kleinen Gärten.
Behind the train station, a quiet housing estate with small gardens begins.
Die Stadt wächst schnell, weil viele Menschen dorthin ziehen.
The city is growing quickly because many people are moving there.