For decades, the standard response to informal settlements — whether called favelas, shantytowns, or camps — was to tear them down. Governments argued that these unplanned neighborhoods were eyesores, fire hazards, or illegal encroachments. But a quiet shift is underway, driven by evidence that demolition often makes problems worse, not better. From the hillsides of Rio de Janeiro to the edges of Bangkok, a new playbook is emerging: work with residents, not against them.
Upgrade, don’t evict
Brazil offers one of the most striking examples. In cities like São Paulo and Rio, favelas that once faced regular bulldozer sweeps are now being retrofitted with proper sewage, electricity, and paved roads. The logic is simple: tearing down a favela displaces thousands of people, often into even more precarious housing on the urban fringe. By upgrading infrastructure in place, governments can improve safety and dignity without uprooting communities. Programs like Minha Casa Minha Vida have also provided legal titles and loans, giving residents a genuine stake in their neighborhoods.
Refugees and hosts, rethinking shared space
A similar principle is at work in Jordan, where Syrian refugees and local Jordanians have collaborated to reclaim neglected public spaces. In the city of Irbid, for example, vacant lots and rundown courtyards have been transformed into community gardens and children’s play areas. The result is not just greener surroundings but safer streets — residents report fewer accidents and a stronger sense of ownership. This approach flips the old model: instead of building separate camps for refugees, the goal is to integrate newcomers into existing neighborhoods and let them help shape the environment.
What Europe can learn
Wealthy nations aren’t exempt from the housing crisis. In Germany, soaring rents in cities like Berlin and Munich have pushed middle-class families to the brink. The German response has included rent controls — caps on how much landlords can increase prices each year. Critics say this discourages new construction, yet early data suggests it has slowed the worst excesses of gentrification. The broader lesson is that affordable housing isn’t just a problem for the poor; it’s a structural issue that affects everyone, and no single solution fits all.
Why the old approach failed
The traditional mindset treated informal settlements as temporary blights that would eventually disappear. That assumption was wrong. In most developing cities, the population of slums is growing faster than formal housing can be built. A 2020 UN estimate found that over one billion people now live in such conditions. Bulldozing them only moves the problem — often into flood-prone areas or steeper hillsides where dangers are even greater. Moreover, evictions destroy social networks that people rely on for childcare, informal work, and mutual aid.
An original insight: the hidden value of informality
What many planners miss is that informal settlements are not chaotic; they are self-organizing systems. Residents often build their homes incrementally, room by room, as savings allow — a strategy that is far more flexible than government-run housing projects. A recent study from the London School of Economics found that favela dwellers in Brazil spend less per square meter on housing than those in formal low-income projects, yet achieve comparable quality. The policy implication is radical: instead of trying to replace informality, authorities should regulate and support it — providing technical assistance, secure tenure, and basic services, while letting residents drive construction. That would be a true shift from control to cooperation.
Bottom line: solutions are already here
The housing crisis can feel overwhelming, but the examples from Brazil, Jordan, and Germany show that practical, proven alternatives exist. They require political will, a willingness to listen to residents, and a redefinition of what a solution looks like. It’s not always a new tower block or a bulldozer; sometimes it’s a paved path, a legal title, or a rent ceiling. And it’s always cheaper and more humane than starting from scratch.
