At the same time, urban reforms led to the demolition of a lot of existing low-income housing, as well as collective housing facilities, which were seen as unhealthy and disease incubators - The city found itself in a difficult position, with huge swathes of homeless and unemployed ex-slaves and migrants.

while it is commonly thought that the first favelas only began to emerge in Rio de Janeiro at the end of the 19th Century, in reality, a preoccupation with unhealthy, unregulated, and improvised urban housing settlements existed since the early decades of the century.

estalagens were groups of tiny houses built next to one another, while casas-de-cômodos were larger houses internally subdivided so that they could be rented to many occupants.