But zoning is required to maintain order. Nobody wants anybody to live in favelas.

As with everything the regulator needs to strike a balance to make the market work.

Given the choice between being homeless and living in favelas, millions in Brazil have chosen to live in favelas.

The reality of zoning laws in Western countries is to provide a target for regulatory capture by the NIMBY crowd. With the result that we're systemically underbuilding housing, then wonder why we wound up with homelessness.