It's not misleading, it's just not as complete as it could be, because population density is a trivial statistic to determine and density of occupied land is much more difficult (for starters you need to define "occupied").

If you have stats on density of occupied land, I'm happy to work with that.

That’s a crazy metric. Is this a thing? How do you define it? Per km? Per metre? Or just by the footprints I make in my carpet? Each gives a very different answer.