Montevideo is a city marked by complex often contradictory dynamics, currently undergoing a persistent process of metropolitanization that involves the decline of central areas and traditional neighborhoods and peripheral expansion through the precarization of housing and new residential areas. The enactment of the National Housing Law in 1968 marked a turning point in Uruguay’s housing policy, initiating a period of welfare-state intervention in the production of habitat. Within this framework, housing cooperatives emerged as a central mechanism for access to affordable, collectively managed housing. This trajectory was interrupted by the civil-military dictatorship (1973–1985), which dismantled many of the institutional structures and participatory frameworks established in the preceding years. The return to democracy brought renewed transformations. The left-wing coalition assumed control of Montevideo's municipal government in 1990 and, subsequently, the national government in 2005. This ushered in the so-called “progressive cycle,” characterized by sustained economic growth, improved income distribution, and the expansion of social protection policies across three consecutive administrations. In this context, the public housing system was restructured, and the cooperative movement regained prominence as a key factor in urban development. Since its inception, the cooperative housing movement has played a foundational role in shaping Montevideo’s urban landscape. Over time, it has operated within diverse policy environments marked by varying degrees of coordination between national and local governments, evolving regulatory frameworks, and the participation of a broad range of social actors. These dynamics have produced a set of experiences and institutional capacities that continue to influence housing policy and urban planning today. Looking forward, several key challenges remain. Chief among them is the need to strengthen the integration of housing policy with land-use planning in order to address emerging urban issues and promote a more inclusive, cohesive, and sustainable model of city-making.