The Recent Appearance of Favelas in São Paulo City: an Old Problem in a New Setting

Abstract— While favelas have been an important feature of many Brazilian cities over the past 50 years, they were relatively insignificant in São Paulo until the mid- 1970s. Since then, São Paulo's favelas have experienced a dramatic expansion and some estimates now put their total population in the region of two million. This article examines potential explanations for this sudden change, including migration, changes in the housing market, relative prices and state intervention.