Abstract
This paper describes how in La Paz, more than a quarter of all households live rent free in a room, apartment or house with the permission of the owner. This form of tenure is called cedida. The paper also compares how household characteristics vary between owner-occupiers, renters and households in cedida in a sample of consolidated lower-and middle-income neighbourhoods within La Paz. This shows how cedida clearly benefits many younger households, by providing them with an opportunity to live in or near the city centre which would be beyond their means as renters or owners.