The following article explains, through a qualitative method, the effects of housing development in the relations of power between the inhabitants of the neighborhood El Paraíso and the local authorities. Throughout the paper it will be sought to proof that the effects of housing development in the relationships of power are: 1) the gentrification given that the construction firms develop housing for people of high purchase power and implies that the traditional inhabitants of the neighborhood have to leave. 2) The generation of, on the one hand, the construction firms exert psychological terrorism, while on the other hand, a neighborhood identity is created in function of the firms and the new inhabitants. 3) The creation of a speech, by the traditional inhabitants, against the Habitat Secretary, given that it is in charge of controlling, looking over and inspecting the alienation and renting of housing, having the IDPAC as the primary bridge of communication between the actors.
