How did housing complexes help reduce overcrowding in central Shanghai?

To reduce overcrowding in central Shanghai, the city implemented a policy of constructing self-sufficient residential complexes throughout its metropolitan and suburban areas. By integrating these housing developments with industrial, agricultural, and commercial infrastructure, the city successfully dispersed the population away from the congested central districts.1

Starting in 1951 with the development of Caoyang New Village, these projects were often built with the support of government bureaus or state-owned enterprises to meet the needs of employees. These complexes, such as those in Pengpu, Zhenru, and Yichuan, were designed to be self-contained; for example, the Pengpu workers' project included apartment buildings, clinics, nurseries, and administrative offices, alongside adjacent fields that provided food for the residents. This strategy of creating integrated satellite towns and villages on the periphery of the city helped alleviate pressure on the central city, which had previously been given low priority for development and renewal.12