High Medieval Denmark saw a period of considerable urban growth, with the expansion of existing towns and the creation of new ones between 1200 and 1350. Many of the trends of the previous centuries continued, with new developments helping to accelerate this rapid urbanization. The monarchy continued to play a role, and the expansionist policies of the late twelfth and early thirteenth centuries opened up new opportunities for Danish trade. The Crown maintained an interest in promoting urban development, particularly for the revenue that urban taxes and tolls could provide. While royal power weakened over the course of the thirteenth century, the Crown continued to be an active participant in town growth. One way was in the granting of town laws, which was done in cooperation between the town lord and the burghers. Kings also continued to mint coins, with Denmark becoming a monetized society. Trade flourished in these centuries, and the development of a commodity trade greatly increased prosperity across the kingdom. In addition, urban artisans became organized, forming their own guilds and associations similar to those developed by merchants in the twelfth century. Trade and exchange were increasingly regulated, and new laws concerning when and where trade could occur, as well as laws regarding consumer protection, were put in place. The Church also continued to expand its presence in the towns, with new cathedrals being built and new religious orders taking root. Moreover, education, which was under the purview of the Church, became an important element in cathedral towns, with cathedral schools serving as centres of learning. This brought new people and new ideas to the towns, which in turn helped to funnel knowledge to other parts of the kingdom.

Between 1200 and 1350, Denmark experienced an urban boom, with 63 new towns founded in this period (Map 10). There was thus a close network of towns spread across the kingdom, so that almost all rural inhabitants had a town within a ten to fifteen-kilometre radius. Only the western part of Jutland had rural districts that were outside this network. In contrast to the inland towns of the previous centuries, many of the new towns were established along the coasts.