Yes. Because if you don't build housing at every scale the bottom level becomes Sao Paulo slums

Those slums are actually remarkably better than "poblaciones callampa" (shroom villages) that popped up in the middle of nowhere in the rest of South America. Those favelas have water, electricity, and solid brick construction. And they're painted pretty colors, what's not to like? The real slums of the world where people who have nowhere to go come together and squat are really much less comfortable than that.

Are the shroom villages in the middle of booming economic growth?

Ah...no, more along the dumps and untilled land.

Housing currently costs so much that it's nearly unaffordable even for tech workers.