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It's easier to manage if you're playing as Romans. Barbarians can be a bit of a nightmare though, because they cap at minor city level.
Building anything that will increase your growth rate actually makes the problem worse if you're already having a squalor problem and once squalor issues present, it's very hard to balance without a few decimations of a settlements population.
Farms
Markets
Certain shrines/temples
Sewers
Baths
Aqueducts
all increase growth rate and therefore increase squalor in the long run.
Any building that increases happiness without increasing growth rate mitigates this. Also depends on ratio between growth rate increase and amount of happiness though. Temples generally do more harm than good for moral if you have a shrine or temple that also increases growth rate.
So, walls,
Colosseum's
Hippocampus' execution squares, ect
all mitigate long term squalor. They increase morale without increasing pop growth.
Your governers traits and retinue can also affect both settlement growth to small degrees and settlement morale to very large extents, for better or worse.
Also be careful with lowering your taxes to deal wth squalor. Because lowering taxes also increases settlement growth rate by 0.5% per tax increment. It's a good stop gap if you need to keep a settlement you care about or delay an inevitable revolt but 9 times out of ten, lowering taxes will result in revolt in the long term. Sometimes it's better to just slaughter the ungrateful turds and be done with it >: ]
Decimations of settlement pop is a very reliable, short term solution. It kinda just resets morale and allows you to try and find an equilibrium between settlement growth and morale. Ultimately, that's what you have to balance.
Alternatively simply gather all of your forces outside of the settlement, set the tax to very high and let the city/town revolt and then take it back while decimating the pop. Could also give you some extra gold while your at it.