This study presents a system dynamics framework that integrates transport and land use components internally, explicitly capturing their interrelations and model their evolution over time. The model operates at a discrete zonal scale with sub-annual time steps, enabling the representation of temporal lags at differing process speeds. A case study at a cross-national scale demonstrates the model’s ability to capture interregional dynamics, including commuting flows that span administrative borders —essential in regions where labour markets and infrastructure extend beyond a single country. The framework incorporates endogenous feedbacks that drives the system behaviour, while remaining computationally efficient, thus enabling planners and policymakers to assess the aggregate effects of short- to long-term urban and transport strategies in a timely manner. Applied to the Greater Region of Luxembourg, the model reproduces observed dynamics and explores policy scenarios. Results show that infrastructure investments in isolation provide only temporary relief, emphasising the need for integrated, forward-looking housing and transport strategies.