Housing stock within Latin American counties is in critical condition as population continues to flourish. To alleviate this epidemic of housing shortage, current housing policy frameworks are examined for events in the past that caused the framework to fail. What is the best solution to boost affordable housing? Through an investigation of housing policy evolution of two comparison cities of Rio de Janeiro and Guatemala City policy frameworks are examined through economic structure and housing system. A solution to the failed housing frameworks is to incorporate neoliberal housing ideals of utilizing the private market to play a role in providing affordable housing in the cities. Through the analysis of Rio de Janeiro and Guatemala City, this paper examines the differences in public policies on housing and identifying how neoliberalism impacts housing policies differ from traditional frameworks. In addition, the paper challenges neoliberal housing ideals and the practicalities for today’s housing climate behind radical ideals.