In low- to middle-income countries around the world, nearly one billion people lived in urban informal settlements as of 2018. Rapid urbanization in most large African cities has led to both more people and a higher proportion of people living in informal settlements over time. Researchers conducted a randomized evaluation to test the impact of winning the housing lottery on the demand for formal government housing, consumption, labor market outcomes, social networks, and community and public goods in Addis Ababa, Ethiopia. Winning the housing lottery increased demand for formal government housing: nearly 46 percent of participant households that win the lottery chose to move into their formal housing, indicating many prefer to live in government housing despite the high implicit cost that they pay to do so.