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Housing financialization: The primary concern regarding the dominance of financial markets in the global housing sector
The intensifying character and extraordinary domination of financial markets and companies in the housing segment is now commonly mentioned as the financialization of housing.
And you know what?
This term has many meanings. One of them is organizational alterations in housing and monetary markets.
The worldwide financing whereby housing is handled as an article of trade.
Not only this but also,
It sometimes also means different ways to oblivious financial markets and housing to different communities and people.
Do you know what a noticeable thing is?
The increase in the dominance of the financial market in the global housing sector has not stopped even in the crisis.
Rather, it has rescaled and strengthened itself according to the field.
In this article, I am going to highlight some main aspects that are related to housing financialization.
Are you ready for it?
If yes, then let this roller coaster journey begin.
Housing Financialization
On the whole, the growth in the financialization of housing in most countries has resulted in money creation.
Not only this, but also it has resulted in the financial stability of most of the minorities.
But there is always the two side of the picture. The downside of this one is that it results in the eviction and homelessness of so many folks.
In the coming section, I am going to state that how housing financialization impacts the normal individual.
We will discuss the positive, the negative, and the ugly side of it.
So, let us dive into it.
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The Bright Side
The bright side is that the housing financialization or finance-related invocation has brought into society.
The finance helps the people to indemnify themselves against life-endangering illness, to the damage caused by natural disasters and others.
Also, financial innovations have always flagged the path for enormous expansion and financial advancement on a national level.
Let us suppose that you are a graduate and leave your city to find a job in another city.
It is housing financialization that will help you buy the house that is according to your pocket.
All in all, the financialization of the house has helped a gazillion of people out there.
But the defenselessness in the system and some other factors have resulted in the crisis.
The lack of regulation has exploited many financial inventions and products that resulted in disbelief in people.
2. The Dark Side
If you remember the financial crisis that happened in 2008, then you also remember what people assumed about that.
Do you remember the assumptions of people?
If no then let me tell you, people assumed that the financial crisis had happened due to the kinked financial system.
They blamed all financial systems, including financial institutes, false ratings from the card rating agencies, and misuse of debt-backed safeties.
And the fun fact is that the blame was true.
It happened due to the immoral and shady officials, policymakers present in the system.
When they ease the regulation backing some folks that have the power and prosperity of making tremendous investing.
As a result of it, normal people undergo a little a lot.
But you know what?
There is no fault of the financialization of housing in it that violates any human right and leads to any corruption.
It is the crummy regulations, the government’s negligence, and the manipulation of the real estate strategies.
These are the reasons that harm human rights.
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The Ugly Side
Let us have an eye on the ugly part of housing financialization, and that is an eviction in a massive amount.
Not only this, but also it resulted in the homelessness of many people in any part of the world.
According to one report, it has been estimated that more than 55,000 people are homeless, and a huge amount of people is living in shelters.
There are many other challenges that people face if we work through proper channels and regulations to provide basic human rights.
This is not in many other ugly sides of it that need proper attention.
Final Opinion
This article is based on all the facts related to housing financialization, whether positive or negative.
To become successful in this area, we need to strengthen the housing policies and enforce strict laws.
References
- https://journals.sagepub.com/doi/full/10.1177/0924051920923855
- https://www.bis.org/publ/cgfs26.pdf