information:classification
Population explosion

The 1920 census estimated the population of Santiago to be 507,296 inhabitants, equivalent to 13.6% of the total population of Chile. This represented a growth of 52.5% from the 1907 census, an annual increase of 3.3%, which was almost three times the national average. This growth was mainly due to an influx of farmers from the southern regions who came to work in the factories and railroads that were being built. However, this growth was concentrated in the suburbs and not in the city center.

During this time, the downtown district consolidated as a commercial, financial, and administrative center, with the establishment of various shops and businesses around Ahumada Street and a Civic District in the vicinity of the Palace of La Moneda. The latter project involved the construction of modernist buildings for the offices of the ministries and other public services, as well as the start of the construction of medium-rise buildings. Meanwhile, the traditional residents of the center began to migrate to more rural areas like Providencia and Ñuñoa, which attracted the oligarchy and European immigrant professionals, and San Miguel for middle-class families. Additionally, in the periphery, villas were built by various organizations of the time. Modernity also spread in the city, with the introduction of the first theaters, the expansion of the telephone network, and the opening of Los Cerrillos Airport in 1928, among other advancements.

The perception that the early 20th century was a time of economic prosperity due to technological advancements was in stark contrast to the living conditions of lower social classes. The previous decades of growth resulted in an unprecedented population boom starting in 1929, but was met with tragedy as the Great Depression hit. The collapse of the nitrate industry in the north left 60,000 people unemployed, compounded by a decline in agricultural exports, resulting in an estimated 300,000 unemployed people nationwide. Desperate for survival, many migrants flocked to Santiago and its thriving industry. However, they often found themselves struggling to find housing, with many being forced to live on the streets. The harsh living conditions resulted in widespread diseases like tuberculosis, and took a toll on the homeless population. At the same time, unemployment rates and living costs skyrocketed, while the salaries of the people in Santiago fell.

The situation would change several years later with a new industrial boom fostered by CORFO and the expansion of the state apparatus from the late 1930s. At this time, the aristocracy lost much of its power, and the middle class, composed of merchants, bureaucrats, and professionals, acquired the role of setting national policy. In this context, Santiago began to develop a substantial middle- and lower-class population, while the upper classes sought refuge in the districts of the capital. Thus, the old moneyed class, who previously frequented Cousiño and Alameda Park, lost their hegemony over popular entertainment venues, and the National Stadium emerged in 1938.