The earliest Athenians did not live on the Acropolis. During the Neolithic and Early Bronze Age (c. 4000–2000 BCE), settlements clustered on the slopes and surrounding plains (Ilissos, Eridanos valleys)—near water, arable land, and defensible but accessible ground.
Only in the 6th century BCE (Peisistratid tyranny) did the ruling elite establish residences on the Acropolis—briefly, controversially. Cleisthenes' democratic reforms (508 BCE) expelled them, cementing the Acropolis as the people's sanctuary, not a palace.
The Astý (city) spread northwest: Agora (civic/commercial center), Kerameikos (potters' quarter, cemetery), Pnyx (assembly hill), residential demes (villages) across Attica. The Acropolis overlooked their lives—it was not where they slept.