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Understanding how, where, and when a city is expanding can inform better ways to make our cities more resilient, sustainable, and equitable. This paper explores urban volumetry using the Building 3D Density Index (B3DI) in 2001, 2010, 2019, and quantifies changes in the volume of buildings and urban expansion in Luxembourg City over the last two decades. For this purpose, we use airborne laser scanning (ALS) point cloud (2019) and geographic object-based image analysis (GEOBIA) of aerial orthophotos (2001, 2010) to extract 3D models, footprints of buildings and calculate the volume of individual buildings and B3DI in the frame of a 100 × 100 m grid, at the level of parcels, districts, and city scale. Findings indicate that the B3DI has notably increased in the past 20 years from 0.77 m3/m2 (2001) to 0.9 m3/m2 (2010) to 1.09 m3/m2 (2019). Further, the increase in the volume of buildings between 2001–2019 was +16 million m3. The general trend of changes in the cubic capacity of buildings per resident shows a decrease from 522 m3/resident in 2001, to 460 m3/resident in 2019, which, with the simultaneous appearance of new buildings and fast population growth, represents the dynamic development of the city.