Beyond the shack: how informal settlements evolve into the cities of tomorrow

Countries & Cities · Published 3 October 2026 Swipe more like this →

In short: Shanty towns are often dismissed as mere collections of scrap, yet they house millions and frequently evolve into permanent, thriving urban neighborhoods. From the favelas of Brazil to the sprawling informal settlements of India, these resilient communities demonstrate a remarkable capacity for self-organization, infrastructure development, and long-term social transformation.

Defined as settlements of improvised structures, shanty towns emerge from necessity, often occupying marginal land like railway sidings or swampland. While they lack formal infrastructure initially, they are far from static. Residents frequently take the lead in upgrading their environments, installing sewage systems, paving roads, and establishing schools. In some cases, these areas transition into stable, middle-class suburbs, as seen in the Los Olivos neighborhood of Lima, Peru, which now features gated communities and clinics.

The scale of these settlements is immense. In Mexico, Ciudad Neza houses between 1.2 million and 4 million people, while in India, Dharavi supports an estimated one million residents within a dense mangrove swamp. These areas are not limited to developing nations; they persist in Europe and North America, with Cañada Real in Madrid serving as the largest informal settlement on the continent. The resilience of these communities is often driven by necessity, with residents recycling materials and utilizing efficient, low-carbon transit methods like bicycles and shared taxis.

The governance of these spaces remains a point of contention. While some authorities pursue demolition and relocation, figures like Pope Francis have advocated for development and community involvement over displacement. Organizations such as the Orangi Pilot Project in Pakistan have successfully empowered residents to manage their own sanitation, proving that informal settlements can achieve significant modernization from within. As urban populations grow, the evolution of these settlements offers a complex perspective on the future of global housing, shifting the narrative from one of mere poverty to one of potential and persistent human ingenuity.

General information, not professional advice. Spotted an error? Flag the card or see corrections and complaints.

Intellect Plus is a visual educational discovery platform for exploring fascinating facts and ideas. Brain Food, Not Brain Rot. What is Intellect Plus?

Related

• Why the world's informal settlements are hubs of global innovation
• Why the world's informal settlements are hubs of innovation
• About a billion people live in homes built without permission
• The urban evolution of a hillside shanty town into a neighborhood
• When temporary shelter becomes a permanent home for generations
• Why the difference between a street and a road defines your city's soul
• The private town that rewrote the rules of American urban design
• Why the dream of suburban living often masks a complex web of hidden costs.
• The hidden history of Romani slavery in the Danubian principalities of Romania
• How a Queens neighborhood became a garden city and a hub for global migration
• How do we define the character of a neighborhood using census data?
• How architecture functions as a tool for social control

More in Urban studies and planning · More in Countries & Cities · Latest · A–Z · All topics