For buildings of the same name in other Tropico games, see Shack.
Shacks come with a few junk items; old steel drums and tires on the roof. They may accumulate more junk or decor as time passes like; trash, clothes-lines and trash-cans if the Enviromentally leaning tenant is close enough to a Garbage Dump. If no Garbage Dump covers the shacks area then the trash-can will take on an overflowing appearance and/or trash may start to accumulate. Chickens, both Hen and Cock can be found around occupied shacks.
Shacks are ugly eye-sores and if no longer needed will eventually disappear. But, in the meantime, they cause Beauty to be lowered; Pollution and Crime to increase. Funny thing is, they tend to appear near the more Beautiful areas of your island's developed area. Their negative effects are compounded by their concentration in a very small area. More than a few and the surrounding area may be greatly impacted.
A Shack or two may appear near workplaces, too far from a Garage or your road network. Usually, they are single people as couples mitigate their living conditions.
The Communist Faction will complain about too many Shacks which lowers their political respect towards El Presidente until the housing problem is solved.
- "Brings new definition to the word ugly. Rock bottom in terms of housing satisfaction and living space, shacks shelter only one family and lower the beauty of the surrounding area. Built automatically when you run low on housing, sometimes they pop up at most inconvenient places."
Build housing for the employed then tackle how to deal with the unemployed. Existing Shanties are helpful but they are rather large and may cramp your island spaces. Bunkhouses($0 rent) have a very small footprint while providing a higher tenant/sq ft ratio. To ensure tenants leave when employed; put them in Roach Patrol Mode(Housing Quality: 17) otherwise, the employed may not 'move-on' as quickly as they should. This works well enough for Student Housing near a High School or College, too.
A Tenement($0 + roach patrolled) is another cheap/space-saving method; when combined with edict options, to house unemployed/retired/students. Abate, some employed may think it as a permanent home and resist 'moving-on' to a better one, due to the cost per 'housing quality' + distances decision while single or a poor couple.
Social Security edict is a lesser method, as it tends to cause reluctance in the unemployed to become employed. Why work when they can enjoy your benevolence. It is possible to counterbalance this effect at a cost. Make plenty of housing just out of their financial reach(greater than 1/3 their monthly income) and limit the Entertainment venues that they can afford(less than their monthly income) to 'crappy service quality' that the employed Tropicans will avoid. No affordable entertainment is an option but long term they may become disgruntled citizens, protesting and such.