Today, most of the big cities or metropolises around the world have been encountering with the problem of informal habitation. The present study, thus, tries to focus on the role of endogenous development in such type of habitation process. For that matter, the paper takes into account architectural programming and urbanism as its theoretical framework because the endogenous development is related to new ways of architecture and urbanism. For a society, exogenous or vertical development and Endogenous or people are two main developmental processes. The current study tries to show as how the endogenous development solves the informal habitation problem. At first, the study analyzes the meaning of habitation, exogenous and endogenous development and then determines how the endogenous development, which is based on sustainable development, help peoples deal with their problems. The methodology applied in this study is analytical, combined with qualitative (from the case study to the theory) and quantitative (from the theory to the case study) researches. Explaining seven factors, the study concludes that the endogenous development has key role in solving the informal habitation problems.