Rising rents, shrinking access: How investment reshaped global housing

In a comprehensive report published by Anadolu Agency, housing experts discuss the alarming trends of rising rents and shrinking access to affordable housing globally. The article highlights that despite soaring housing values and increased investment activity, many residents are facing significant challenges in securing affordable homes.

Senior UN housing expert Balakrishnan Rajagopal emphasizes that the core issue driving homelessness in affluent countries is the inability of people to afford rising rents. In major cities across the EU, one in ten households spends more than 40% of their income on housing costs. This situation reflects a broader trend where households are increasingly forced to allocate a larger share of their income to shelter, leaving them vulnerable to eviction and homelessness.

The report reveals that housing is increasingly treated as a financial asset rather than a basic necessity. Julieta Perucca, deputy director at The Shift NGO, indicates that homes are bought, sold, or left vacant to maximize profits, pushing many individuals out of the housing market. The real estate market, valued at approximately $304 trillion globally, leaves governments hesitant to enforce accountability, primarily due to the economic and political implications involved.

The housing crisis is not limited to a single region, as evidenced by rising costs in various countries. In France, housing prices surged by 88% from 1996 to 2023, while average wages only increased by 13%. Similarly, in the United States, median home prices rose nearly 50% between 2019 and 2024, outpacing wage growth. The increasing cost of housing has been linked to a sharp rise in homelessness, with the U.S. reporting a record 771,480 homeless individuals in a single night.

Rajagopal criticizes many governments for failing to invest in social housing and allowing market forces to dictate housing availability. He points to successful models in cities like Vienna and Singapore, where long-term public ownership and land-price regulation have kept homes affordable despite high demand. The article also mentions the Netherlands’ decision to abolish its housing ministry in 2012 as a significant error, which was later reversed due to growing pressures related to homelessness and affordability.

The right to adequate housing is recognized in the Universal Declaration of Human Rights and various international treaties, obligating governments to ensure access to safe and affordable housing. However, activists note that this right is often treated as aspirational rather than enforceable. Perucca argues for the need for sustained civil society pressure alongside government action to fulfill this right.

Both experts reject the notion that migration is the primary cause of housing shortages, calling migrants an easy political scapegoat. Instead, they argue that the real issue lies with global capital investment in housing markets, which has exacerbated the crisis. Rajagopal emphasizes that the housing shortages in Europe are primarily home-grown and not attributable to external factors. In conclusion, the article underscores the urgent need for systemic changes in housing policies to address the growing crisis of affordability and access, calling for innovative solutions and greater accountability from governments to mitigate the adverse effects on vulnerable populations.