Housing supply in the real estate downturn of the São Paulo metropolis in the 2000s

Abstract

The analysis identifies changes and continuities in the behavior of housing supply in the real estate downturn of the São Paulo Metropolitan Region in the 2000s. It is structured on a periodization, considering macroeconomic movements and their impacts on the real estate sector. We observed dynamics based on market subtypes and on supply expansion vectors, reflecting specificities and the roughness of the metropolitan territory. In addition, we surveyed the characteristics of housing launches and their pricing based on the available financing and on strategies to maximize developers’ gains. There is a repositioning of the sector as the capital city’s market is prioritized by strategies that regionally counteract the crisis through an important supply of affordable housing and pattern changes, supported by the Minha Casa Minha Vida housing program, with an increasing participation of large companies.

real estate market; housing supply; downturn; Metropolitan Region of São Paulo