Most people continued to live in villages in the Middle Ages, but the rise of towns and the growth of a new business and commercial class were central to Europe’s recovery after the disorders of the tenth century. Several factors contributed to this growth: a rise in population; increased agricultural output, which provided an adequate food supply for new town dwellers; and enough peace and political stability to allow merchants to transport and sell goods.

Towns in Europe were generally enclosed by walls as were towns in China, India, and the Middle East. Most towns were first established as trading centers, with a marketplace in the middle, and they were likely to have a mint for coining money and a court for settling disputes. Residents bargained with lords to make the town politically independent, which gave them the right to hold legal courts, select leaders, and set taxes.

Townspeople also tried to acquire liberties, above all personal freedom, for themselves. It gradually developed that an individual who lived in a town for a year and a day, and was accepted by the townspeople, was free of servile obligations and status. Thus serfs who fled their manors for towns and were able to find work and avoid recapture became free of personal labor obligations. In this way the growth of towns contributed to a slow decline of serfdom in western Europe.

Merchants constituted the most powerful group in most towns, and they were often organized into merchant guilds, which prohibited nonmembers from trading, pooled members’ risks, monopolized city offices, and controlled the economy of the town. Towns became centers of production as well, and artisans in particular trades formed their own craft guilds. Members of the craft guilds determined the quality, quantity, and price of the goods produced and the number of apprentices and journeymen affiliated with the guild. Formal membership in guilds was generally limited to men, but women often worked in guild shops without official membership.

Artisans generally made and sold products in their own homes, with production taking place on the ground floor. The family lived above the business on the second or third floor. As the business and the family expanded, additional stories were added.

Most medieval towns and cities developed with little planning or attention to sanitation. Horses and oxen, the chief means of transportation and power, dropped tons of dung on the streets every year. It was universal practice in the early towns to dump household waste, both animal and human, into the road in front of one’s house. Despite such unpleasant aspects of urban life, people wanted to get into medieval towns because they represented opportunities for economic advancement, social mobility, and improvement in legal status.