Building Dreams - Affordable Housing Innovation in Brazil

Challenge: São Paulo's periphery faced a housing crisis with 2.3 million people living in inadequate conditions. Traditional affordable housing was either too expensive or too far from employment centers. Families spent decades on waiting lists for government housing while living in precarious settlements.  

Our Approach: Lexington Advisory Group advised ConstruBem, a social enterprise, on developing innovative, affordable housing using local materials and community labor. We researched successful models from other emerging markets and adapted them for Brazil's urban context, focusing on proximity to transportation and incremental building approaches.  

Implementation: We helped ConstruBem create a model where families could build equity through "sweat equity"—contributing labor hours toward their own homes and neighbors' homes. Technical training programs taught construction skills while building houses. Micro-finance partnerships allowed families to purchase materials gradually. Solar panels and rainwater collection made homes sustainable and affordable to operate.  

Results: Over four years, the program built 1,247 homes housing 4,800 people. Families reduced housing costs from 65% to 23% of income. The construction training program placed 89% of graduates in formal employment. Property values in surrounding areas increased by 34% as neighborhoods improved. The model is now being replicated in five other Brazilian cities.  

What Made It Work: Treating housing as community development, not just construction. When families build their own homes alongside neighbors, they create social capital that strengthens entire neighborhoods. Our role was to provide the frameworks and financing to make collective action possible.