Popular housing in Brazil: From housing market to minha casa minha vida program

A major issue in contemporary major cities, especially in developing countries, is the housing shortage of lower income ranges. In Brazil, the estimated deficit for 2008 was over 5.5 million households, 83% in urban areas. Almost all of the deficit (89,9%) refers to families with incomes up to three minimum wages (circa US$ 1.000,00). Nine major Brazilian metropolitan regions concentrate 27,6% of the deficit. São Paulo Metropolitan Area (SPMA) has a deficit of 504 thousand households.

Popular housing market has been present in São Paulo Metropolitan Area real estate market during last decade. Real estate data shows a significant concentration of units launched in the period between 2000 and 2004. About 24 thousand, or 15% of the new residential units, could be classified as popular housing.

Minha Casa Minha Vida Program (My House My Life Program - MCMV) launched in 2009 had the goal to construct 1 million new houses in Brazil, for families with income up to 10 minimum wages (circa US$ 3,400). In May 2001, was launched the second part of the program that intends to construct 2 million new houses until 2014.

Without doubt, building programs for new housing are important and necessary. The important question that has to be discussed now is if the new housing program is reaching the program target group.

This paper intends to analyze São Paulo Metropolitan Area housing market during the last decade and the impacts of Minha Casa Minha Vida Program in the metropolis popular housing provision. Observing if the program answers the existing housing deficit and what are the characteristics of the new housing developments.