In this study, we examine housing allocation and transportation emission problems in an urban city. Housing development patterns have a significant influence on travel behavior and related transportation emissions. We consider a hypothetical city with one central business district in which the road network is assumed to be sufficiently dense to be viewed as a continuum. We establish a bilevel dynamic continuum model to describe the relationships among housing provision, the transportation system, and traffic-related emissions. In the lower-level subprogram, housing allocation is considered in a simultaneous departure time and route-choice dynamic traffic user equilibrium model, in which travelers choose routes and departure times that satisfy dynamic user-optimal principles. In the upper-level subprogram, the total emissions are minimized by optimizing the housing allocation. The finite-volume method, the projection method, the method of successive averages, and the Frank-Wolfe method are applied to solve the presented model based on unstructured meshes. A numerical experiment for an urban area with one central business district is given to demonstrate the effectiveness of the model and the numerical algorithm.postprin