Casita plays a major role in Encanto, as both a symbol and protector of the Madrigals' gifts. Arguably the most pivotal moment in the Disney film comes when the Casita is destroyed and the family's magic along with it. However, this also leads to some of Encanto's most heartwarming moments, as both the Madrigals and their neighbors work together to rebuild the home.
The Casita also plays an integral role in establishing the family's dynamics. Alma's obsession with the house and its magic severely damages her relationships with her grandchildren, as she clearly values them for their gifts above anything else they have to offer. This is shown in her relationship with Mirabel especially. Alma is colder towards Mirabel compared to her other grandchildren because she didn't receive a gift. She also ignores Mirabel's concerns about the Casita leading up to its destruction, which worsens the problem. Ultimately, the Casita serves as a clear indicator of the Madrigal family's issues with one another, even if they refuse to address them until it's too late.
Luckily, Casita was rebuilt at the end of Encanto. Responding to one viewer's question about the film, he explained how Mirabel's gift ceremony affected her relationship with Alma, also suggesting the family would be altered by the events at the end of the film:
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It makes sense the Casita's destruction and eventual rebuild would change the Madrigal family, almost certainly for the better. Alma is already shown to be significantly warmer toward Mirabel in Encanto's final moments, and this would likely only increase in the future. It's clear Alma regrets much of her behavior toward her grandchildren, and it's easy to imagine her making more of an effort to treat them equally after the events of the movie.
Similarly, the Casita's rebuild in Encanto would likely alter the dynamic between Mirabel and her sisters. Like Mirabel's improving relationship with Alma, this is shown some in the film, with the three finally understanding each other and the unique burdens they carry. However, the movie suggests they will become even closer after the Casita is rebuilt. Hopefully, an Encanto sequel or other related project will further explore the Madrigal family's dynamics.
Source: Jared Bush
