Commodification of housing
Commodification of housing refers to the transformation of basic shelter, rental housing, and homeownership into an investment vehicle or speculative asset as opposed to a public good, human need, or human right.
Financialization of housing
[edit]
Instead of outright purchasing in cash, homes and housing units are often purchased with 15 or 30-year mortgages. These can be securitized and sold on a secondary mortgage market as packages of individual mortgages.[1] The secondary housing market is considered to be the primary cause of the global 2008 financial crisis as lenders made risky loans to subprime borrowers who defaulted on their mortgage payments.[2]
Globalization has led to foreign nationals buying land and housing in many countries, including non-EU nationals buying 27,000 properties in Spain in 2023[3] and Chinese companies (both acquisitions and companies originating in China) buying hundreds of acres of US farmland.[4] Some countries have bans on foreign nationals purchasing land but not real estate.[5]
The rental market has also been described as a form of commodification of housing. Margaret Jane Radin wrote that the framing of tenants' personhood as a "specific asset" invested in an apartment was a form of "universal commodification" in which, "all things and attributes that people value in themselves, in other people, and in their physical and social environment are conceived of and reasoned about as if they were objects of trade."[6]
Housing as a human right
[edit]
Some housing advocates have called for a "decommodification" of housing in response to the housing crisis.[7] Some groups have tied rental housing vouchers to commodification[8] and have advocated for an expansion in social housing instead.[9]
See also
[edit]References
[edit]- ^ Royal, James (2025-04-03). "What Is The Secondary Mortgage Market?". Bankrate. Retrieved 2025-06-02.
- ^ Williams, Mark (2010). Uncontrolled Risk. McGraw-Hill Education. ISBN 978-0-07-163829-6.
- ^ Basteiro, Daniel. "Spain Pushes Ahead With Plan to Tax Non-EU Home Buyers 100%". Bloomberg.
- ^ "Is China really buying up U.S. farmland? Here's what we found". NBC News. 2023-08-25. Retrieved 2025-06-02.
- ^ Phillips, Morgan. "New law would stop foreign adversaries from 'buying up our country' while Americans can't afford homes". Fox News.
- ^ Radin, Margaret (Winter 1988). "Rent Control and Incomplete Commodification: A Rejoinder". Philosophy & Public Affairs. 17 (1): 80–81.
- ^ "Expanding the Affordable Housing Supply". National Alliance to End Homelessness. Retrieved 2025-06-02.
- ^ Fenton, Alex; Lupton, Ruth; Arrundale, Rachel; Tunstall, Rebecca (2013-12-01). "Public housing, commodification, and rights to the city: The US and England compared". Cities. 35: 373–378. doi:10.1016/j.cities.2012.10.004. ISSN 0264-2751.
- ^ "Negating Objections to Housing Decommodification through Strategic Tenant Movement Support for Comprehensive Economic and Social Rights (May-August 2024 P & R Journal) - PRRAC — Connecting Research to Advocacy". 2024-08-21. Retrieved 2025-06-02.