This article systematically and quantitatively characterizes interaction dynamics and community formation based on changes in spatial patterns of contemporaneous households. We develop and apply a geospatial routine to measure changing extents of household interaction and community formation from AD 600 to 1280 on the Mesa Verde cuesta in southwestern Colorado. Results suggest that household spatial organization was shaped simultaneously by the maintenance of regular social interaction that sustained communities and the need for physical space among households. Between AD 600 and 1200, households balanced these factors by forming an increased number of dispersed communities in response to population growth and variable environmental stressors. However, as population rebounded after the megadrought of the mid-1100s, communities became increasingly compact, disrupting a long-standing equilibrium between household interaction and subsistence space within each community. The vulnerabilities created by this change in community spatial organization were compounded by a cooler climate, drought, violence, and changes in political and ritual organization in the mid-1200s, which ultimately culminated in the complete depopulation of the Mesa Verde cuesta by the end of the thirteenth century.