LAUSR

ABSTRACT The social issue of housing has been a focal point in the criticism of Brazilian modernity, and it still plays a central role in the balance of Brazilian democracy. This paper discusses the investments in modern housing made by the welfare system in Brazil and which are related to the country's transition toward an urban society in the late 1930s. The analysis concludes in the 1960s, when these investments ended. The relationship between housing and the industrial economy characterized urban development in Brazil in this period. The latter saw direct state intervention in overseeing the building of houses for urban workers. This process started during Brazil's authoritarian regime [1937–1945], just as the cycle of Brazilian industrial democracy began in the mid-forties. The state housing policy worsened the urban crisis while also increasing the real estate market. It triggered several major controversies including an imbalance in urban classes associated with exclusively rich and poor neighbourhoods. The extension of the housing policy and social benefits to all citizens triggered tensions. These findings explain the challenges of political process, the changes in the housing policy and the swelling of Brazilian urban society.