diff --git a/src/lang/english.txt b/src/lang/english.txt
index b5749351f0..dc30d62ff1 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -5181,11 +5181,12 @@ STR_TOOLBAR_CARGOS_CAPTION                                      :{WHITE}{COMPANY
 STR_TOOLBAR_CARGOS_NAME                                         :{BLACK}{STRING}
 
 #towns
-STR_TOWN_DIRECTORY_TOWN_COLOUR                                  :{ORANGE}{TOWN}{BLACK} ({COMMA})
-STR_TOWN_DIRECTORY_CITY_COLOUR                                  :{YELLOW}{TOWN}{BLACK} ({COMMA})
+STR_TOWN_DIRECTORY_TOWN_COLOUR                                  :{ORANGE}{TOWN}{BLACK} ({COMMA}) {YELLOW}{COMMA} {P "house" "houses"}
+STR_TOWN_DIRECTORY_CITY_COLOUR                                  :{YELLOW}{TOWN}{BLACK} ({COMMA}) {YELLOW}{COMMA} {P "house" "houses"}
 STR_OLD_DEPOT_TRAINT_LENGTH                                     :Old depot length format: {STRING2}
 STR_SMALLMAP_TOWN_LARGE                                         :{TINY_FONT}{YELLOW}{TOWN}
 
+STR_SORT_BY_HOUSES                                              :Houses
 STR_ORDER_DIST                                                  :{NUM}, {NUM}
 
 #server list
diff --git a/src/town_gui.cpp b/src/town_gui.cpp
index 94bfc18824..ea303221bb 100644
--- a/src/town_gui.cpp
+++ b/src/town_gui.cpp
@@ -787,6 +787,15 @@ private:
 		return (a_population < b_population) ? -1 : 1;
 	}
 
+	/** Sort by number of houses (default descending, as big towns are of the most interest). */
+	static int CDECL TownHousesSorter(const Town * const *a, const Town * const *b)
+	{
+		uint32 a_houses = (*a)->cache.num_houses;
+		uint32 b_houses = (*b)->cache.num_houses;
+		if (a_houses == b_houses) return TownDirectoryWindow::TownPopulationSorter(a, b);
+		return (a_houses < b_houses) ? -1 : 1;
+	}
+
 	/** Sort by town rating */
 	static int CDECL TownRatingSorter(const Town * const *a, const Town * const *b)
 	{
@@ -884,6 +893,7 @@ public:
 
 					SetDParam(0, t->index);
 					SetDParam(1, t->cache.population);
+					SetDParam(2, t->cache.num_houses);
 					/* CITIES DIFFERENT COLOUR*/
 					DrawString(text_left, text_right, y + (this->resize.step_height - FONT_HEIGHT_NORMAL) / 2, t->larger_town ? STR_TOWN_DIRECTORY_CITY_COLOUR : STR_TOWN_DIRECTORY_TOWN_COLOUR);
 
@@ -924,7 +934,8 @@ public:
 
 					SetDParam(0, t->index);
 					SetDParamMaxDigits(1, 8);
-					d = maxdim(d, GetStringBoundingBox(STR_TOWN_DIRECTORY_TOWN));
+					SetDParamMaxDigits(2, 5);
+					d = maxdim(d, GetStringBoundingBox(STR_TOWN_DIRECTORY_TOWN_COLOUR));
 				}
 				Dimension icon_size = GetSpriteSize(SPR_TOWN_RATING_GOOD);
 				d.width += icon_size.width + 2;
@@ -1035,6 +1046,7 @@ const Town *TownDirectoryWindow::last_town = NULL;
 const StringID TownDirectoryWindow::sorter_names[] = {
 	STR_SORT_BY_NAME,
 	STR_SORT_BY_POPULATION,
+	STR_SORT_BY_HOUSES,
 	STR_SORT_BY_RATING,
 	INVALID_STRING_ID
 };
@@ -1043,6 +1055,7 @@ const StringID TownDirectoryWindow::sorter_names[] = {
 GUITownList::SortFunction * const TownDirectoryWindow::sorter_funcs[] = {
 	&TownNameSorter,
 	&TownPopulationSorter,
+	&TownHousesSorter,
 	&TownRatingSorter,
 };