What is the financialisation of housing?

The document titled "What is the financialisation of housing?" is published by Habitat et Participation, an association focused on collaborative housing and citizen participation in housing matters. The study, authored by Pascale Thys, explores the increasing financialisation of housing and its implications, particularly through the lens of collaborative housing as an alternative.

Financialisation refers to the process whereby housing becomes a financial asset subject to market forces. The document discusses the evolving nature of property rights, mortgage lending history, and the consequences of speculation in the housing market. It emphasizes that financialisation has transformed housing into a commodity, affecting the rights of individuals and communities.

The study provides examples from Brussels, highlighting key terms related to the financialisation of housing. It points out the significant rise in property speculation and the impact of massive renovations on the housing market. There is a concern that without proper regulations, the ongoing renovations could lead to further financialisation, pushing vulnerable populations out of affordable housing.

In response to the challenges posed by financialisation, the study advocates for collaborative housing models. These models prioritize community engagement and aim to resist speculative pressures. The report details historic and contemporary examples of successful collaborative housing initiatives, arguing that they offer a viable alternative to the dominant financialised housing market.

The document outlines several consequences of financialisation, including the crisis of mortgage loans, loss of homes, and the privatization of social housing. It notes a growing trend of gentrification, where low-income residents are displaced by wealthier populations due to rising property values. The financialisation of housing has also exacerbated homelessness in urban areas, with a reported increase in the number of homeless individuals in Brussels.

The study concludes by urging the need for alternative housing models that can resist financialisation. It emphasizes the importance of governance structures that prioritize community values over profit. By leveraging collaborative housing models, the report argues that communities can create sustainable and affordable living environments.

For those interested in exploring the topic further, the publication includes references to additional resources, studies, and videos that provide insights into the financialisation of housing and potential solutions through collaborative practices.