This almost entirely excluded low-income populations from joining the housing market as they would require longer periods to pay off debts - Hence, they resorted to build their own makeshift homes on the outskirts of properly urbanized neighborhoods and thus expanding favelas. 

According to census data, the annual growth rate of the city's population residing in favelas slowed in the 1960s - largely because the growth of the city as a whole slowed, due to a decrease in migration compared to the 40s and 50s.

furthermore, public transport had become cheaper which meant that it was viable for people to occupy more distant land and commute longer distances to work, while selective slum eviction policies were implemented.

by the end of 1960's, the term favela entered the terminology of the social sciences.