Currently lacking 7.2 million residential units, the Brazilian government predicts that this deficit could nearly double to 12.45 million units by 2023.

The shortage occurred because urbanization happened very rapidly. Up to the mid-20th century, the majority of the population resided in rural areas. In the past 50 years, people flocked to cities. For example, when the capital city of Brasilia was founded 46 years ago, it was projected to accommodate 500,000 people by the year 2000. However in 1990, 30 years after its founding, the city's population was over one million. A third of the country's population now is concentrated in only nine metropolitan regions.

Housing shortages are greatest among workers who earn up to €320 annually, with 93% of the deficit concentrated in this group. Consequently, the federal government has stepped up its spending on housing. Brazil's Minister for the Cities Márcio Fortes reported that a record €2.8 billion was spent on habitation in 2005, the highest in 11 years. Seventy percent of this was applied to low-income families. Earlier this year, Fortes announced that the 2006 target will reach €6.3 billion in housing investment, with the intent to supply 70,000 new units.

Brazil's construction industry currently builds one million housing units each year; about 75% of which are self-constructed. The industry employs 15 million people and makes up 13.8% of the gross domestic product (GDP). Six percent of this figure is residential construction with spending over €3.8 billion.