Abstract
The marketing of urban space which is inherent to a free market economy aiming at maximising real state profits , produces the concentration of social housing in certain sectors of the city thus freeing the rest of the urban areas from the devaluation that takes place around social housing neighbourhoods. Thus rises social housing segregation clearly present in metropolitan areas in Chile (Santiago, Valparaiso y Concepcion) but it is also starting to appear in intermediate size cities like La Serena and Coquimbo, which is the case study in this paper. The aim is to reveal the characteristics of this phenomena and its negative effects not only on the inhabitants affected by segregation but also on real state market itself which is deprived of a segment of potential demand due to the housing immobility of the lower socio-economic groups.
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