Housing Financialization and The EU

FROM CRISIS
TO CATACLYSM:
HOUSING FINANCIALIZATION AND THE EU
ENIKŐ VINCZE AND EVA BETAVATZI
Housing Financialization and the EU 1

About the authors:
Enikő Vincze // is a professor on sociology at Babeș-Bolyai University and a researcher on housing regimes
and urban (re)development in the context of capitalist transformations in European semiperipheries. She
acts as a political activist within the Căși sociale ACUM!/Social Housing NOW! movement from Cluj,
Romania.
Eva Betavatzi // is an architect involved in the housing justice movements in Belgium and Greece and she
has also conducted research on debts. In 2022 and 2023, she was a facilitator of the European Action
Coalition for the Right to Housing and To the City.
B-1047 Brussels, Belgium
+32 (0)2 283 23 01
[email protected]
www.left.eu
2 Housing Financialization and the EU

CONTENT
INTRODUCTION 4
PROLOGUE 7
1. How has the problem evolved, and who is accountable? 7
2. Preamble statistics regarding the housing question 8
3. The aims of the present study 10
I.- TRENDS AND ACTORS OF HOUSING FINANCIALIZATION 13

1. General trends 13
2. Economic trends 14
3. Political trends 16
4. Financialization of various housing market sectors 19
5. Main actors in the financialization of residential real estate 20
II.- THE CURRENT POLY-CRISIS AND ITS EFFECTS ON THE HOUSING MARKET 23
1. The pandemic 23
2. The war in Ukraine 24
3. The Cost-of-Living crisis 26
III.- THE ROLE OF EU POLICIES IN HOUSING FINANCIALIZATION 35

1. The free movement of capital and fiscal policies 35
2. Capital markets and banking unions 36
3. Competition and state aid rules 37
4. Urban and housing programs with limited actions 37
IV.- EXISTING PROPOSALS TO SOLVE THE HOUSING CRISIS 40

1. The 2024 Housing Europe Manifesto and its limitations 40
2. The 2024 European New Deal for Affordable and Social Housing 41
3. What is missing from the above initiatives? 41
V.- FRAMING THE HOUSING QUESTION IN CAPITALISM FROM A MARXIST PERSPECTIVE 45

1. The role of housing in capitalist political economy 46
2. The manifestation of five contradictions of capitalism in housing 47
3. Housing classes and inequalities in capitalism 48
4. Financing housing and housing financialization in financial capitalism – a general overview 49
5. Post-2020 developments in housing financialization in a nutshell 52
VI.- SOLVING THE HOUSING QUESTION AS PART OF A SOCIALIST ALTERNATIVE TO CAPITALISM

55
1. Build the solutions to the housing-related contradictions and inequalities created by capitalism on
socialist principles 55
2. Address the housing question (re)produced by capitalism as a component of a socialist alternative 55
3. Make it public, expropriate, and socialize: think through radical housing measures 56
4. Create a non-profit financial system that facilitates the mass production of public housing 57
EPILOGUE 60
REFERENCES 62

INTRODUCTION
Adequate housing was recognised as part of the to the latest Eurostat data for 2022, 112% above the
right to an adequate standard of living in Article 25 EU average. 68% of Irish adults aged between 25
of the 1948 Universal Declaration of Human Rights, and 29 were still living with their parents in 2022, in
and in Article 11.1 of the 1966 International Covenant stark contrast to rates in Denmark (4.4%), Finland
on Economic, Social and Cultural Rights. A home is (5.7%) and Sweden (6.3%). The EU average is 42%.
a place where one can feel safe and secure; it offers
stability and predictability in an increasingly unstable So many indicators suggest the supply of housing is
and unpredictable world. In Europe for much of the dysfunctional and failing in Ireland. At the heart of
twentieth century and in particularly after the First this dysfunctionality and failure, I contend, is the
World War, states were centrally involved in provision neoliberal housing policy of successive Irish
of affordable housing and building social housing. governments. Successive Irish governments have
The Irish state not only built social housing en masse relied on the private sector to deliver housing. The
during this period, but also facilitated low cost state has largely given up building social or affordable
mortgages to subsidise home ownership. But since housing. By owning such stock directly, states can
the rise of the neoliberal economic dogma in the provide affordable housing solutions. In many EU
1970s and 80s across Europe, housing in Ireland, member states, the state owns up to 25% of housing
and in Europe generally, has been financialised and stock. Ireland once owned as much as 18% of the
treated as a commodity to be traded rather than as country’s housing stock. That number is currently
a home for safe and secure, community-based living. just 9% in Ireland and is not growing in any significant
way as the state repeatedly fails to meet its own very
weak social housing building targets. In 2021 Ireland
“Ireland has the had a target to build 9,500 new social housing units.
It built just 5,196. In 2022 the target was to build
highest housing costs 9,000 units, but 7,433 were built. In 2023, the target
was 9,100. The total output for the first three quarters
in the EU according to of the year was just 2,642.
the latest Eurostat Instead of increasing its own housing stock, Ireland
data for 2022, 112% massively subsidises the private sector. Examples
of this include generous tax breaks for real estate
above the EU average.” investment trusts, the reduction of development
levies, weakening of apartment building standards,
the sale of National Asset Management Agency loans
With every month that currently passes, Ireland at huge discounts to vulture funds, the privatisation
reaches another record high of homelessness. The of public land by gifting to private developers for
latest number of individuals accessing emergency the development of mixed-tenure housing with 70%
accommodation at the time of writing was 13,841. private units for sale and just 30% as social housing.
This includes more than 4,000 children. Between Successive Irish governments have been entirely
2010 and the fourth quarter of 2023, rents in Ireland wedded to the notion that the market will fix the
increased by 102% according to Eurostat. This problem. The market has failed utterly.
represents the third highest increase in the EU for
the period. The average rent price increase in the The financialisation of housing in Ireland has been a
EU for the same period was 22.8%. House prices in central and defining feature of homeownership in
Ireland between 2010 and the fourth quarter of 2023 terms of building and development, and mortgage
increased by 55%. Across the EU for the same period markets and investment since the 1980s. But in recent
house prices increased on average by 47.9%. Ireland decades Ireland has also suffered from a
has the highest housing costs in the EU according comprehensive financialisation and neoliberalisation

of social housing. Since the 1980s social housing
policy in Ireland has increasingly depended upon
and supported the private market. One such example
is the Housing Assistance Payment (HAP), which was
introduced in 2014. Under this scheme, tenants who
qualify for social housing source their own private
rental accommodation, but the state pays most of
their rent directly to private landlords up to certain
maximum rent thresholds. HAP is a subsidy for low-
income households, but it is also a massive transfer
of public wealth to private landlords. In 2022, a total
of €515.2 million was paid to landlords by the State
through the scheme, a 45 per cent increase on the
€354.6 million spent four years earlier in 2019.
Instead of housing HAP tenants in state owned social
houses, the HAP scheme drops them into the private
market and pits them against other private renters
for what is already extremely limited stock. While is
it true that some kind of rent supplement will likely
always be a necessary part of Ireland’s housing
system, the current scale of this massive transfer of
public funds to private landlords is completely
unsustainable and exacerbates the affordability
problem. It is also the primary driver of inequality
in Ireland, as less and less people have the opportunity
of owning their own home and wealth is consolidated
among a select few who reap the benefits of rentier
capitalism.
Eniko and Eva’s study is a very welcome and timely

one ahead of the upcoming European Parliament
elections. It encourages readers to look beyond
neoliberalism to understand how capitalism inevitably
created and continues to create the housing crisis
due to housing’s role in capital accumulation and
exploitation. It is a thorough and comprehensive
history and analysis of an issue that has plagued
Europe for a number of decades and has recently
manifested as a fully blown emergency across the
continent.
//Clare Daly, MEP

//Mick Wallace, MEP

00
PROLOGUE
In the past decades, neoliberalism has been criticized whom they were supposed to represent, unable to
by politicians on the left and people affected by solve the problems, or corrupt. There were very few
housing rights violations and decreased affordability radical voices warning about the systemic nature of
of adequate homes. Its policies began to be housing problems or about the fact they were due
implemented well before the middle of the 2000s to the basic rule of capital accumulation, i.e., profit
when public housing was privatized, and everyone maximization, and has been connected to how
was encouraged to borrow mortgage loans to capitalism inevitably creates crises and overcomes
become homeowners, ultimately ensuring the them by rescuing the capital with the support of the
ongoing profitability of the real estate and banking state. It is time to fill this void. Our study contributes
business. Housing market prices continuously grew, to this endeavor.
the cities were redeveloped to serve the interests
and resources of the better-off, and the waiting lists Housing insecurity strengthened when, especially
for social housing became longer and longer. Our after 2014, international landlords speculated the
study offers a systemic critique of these interconnected increase in demand for rental housing and quantitative
phenomena. They are manifestations of the housing easing measures and purchased thousands of
crisis, inequalities, and injustices that we address as dwellings across countries, contributing to the
constitutive pieces of the housing question in escalation of prices. Furthermore, the unafforadbility
capitalism at the juncture of economy and politics, of housing increased during COVID-19 and the
capital and state, and markets and policies. subsequent escalation in energy prices, whichinduced
huge inflation, causing everything, including basics
We write at a moment of globalized poly-crises in a such as food, to become excessively costly. The
busy electoral year, when more and more political situation for indebted people worsened because the
parties claim housing as a key political issue, and central banks decided to raise interest rates to
even international financial organizations declare the moderate inflation. There were very few radical voices
need for a fairer global economy. Therefore, while who pinpointed that capitalism and not simply its
addressing the housing question, we cannot avoid neoliberal policies created all these problems,
interrogating what kind of a new political establishment including in the housing sector, making the different
and economic order could solve it as far as this labor class segments more and more precarious. We
“question” is a constitutive element and product of aim to strengthen them through our study.
the current wave of disaster capitalism that brought
together economic, environmental, and geopolitical The governments implemented measures during the
crises. pandemic and the energy crisis that offered state aid
and subsidies to companies, ensuring the profits they
1. HOW HAS THE PROBLEM EVOLVED, have been extracting from the exorbitant living costs.
AND WHO IS ACCOUNTABLE? We observed that old neoliberalism, claiming the
non-interference of the state in the market, gave way
The anti-neoliberal feeling amplified during the to new policy trends that explicitly redirected public
2007/2008 global economic crisis when many money to private companies or increased public debt
indebted persons lost their homes because they for their benefit. Nowadays, capital continues to be
could not afford to pay any more or as a result of invited and supported to move freely across country
foreclosures by banks, and the evictions of borders, and the European Union calls the Member
impoverished people by public or private homeowners States to derisk new investment opportunities for
became overwhelming. Throughout the austerity private companies. However, globally, barriers in
period, when people’s insecurity in jobs, salaries, international trade have started to be installed on
and housing heightened, and many resorted to the dividing lines between capitalist countries
informal settlements, politicians from the state differentiated in the Western discourse by the
apparatuses were blamed for being careless with dichotomy “liberal democracies” - “illiberal

democracies.” In parallel with this, the states’ efforts people whose productive and reproductive labor
to prevent people’s free movement are increasing, keeps the society and economy running. Our study
even if this happens selectively depending on the aims to contribute to this.
origins of immigrants. The generalized strong anti-
immigrant wave is fueled by the far right. Extremists 2. PREAMBLE STATISTICS REGARDING
drive the indigenous people of their countries to THE HOUSING QUESTION
embrace the idea of national capitalism, where the
national bourgeoisie makes the rule and directs Simultaneously with the processes we described
popular unrest against foreigners, both ordinary earlier, the role of housing financialization and
people and global capital. There is an urgent need property-related wealth in the current capitalist
to stop their upsurge while making the critique of economy has become more significant. This is
capitalism really work. reflected in figures, which show that, globally,
between 2019-2022, all the major residential asset
Additionally, with the outbreak of the war in Ukraine, classes have delivered positive growth (a rise of
we witnessed that neoliberalism and globalization, 18.7%). The total value of the world’s real estate
as we knew it since the 1980s, created a situation in stood at $379.7 trillion at the end of 2022, with over
which the dominant imperialist powers and capitalist 75% of it being tied up in residential property, 13%
states struggle against each other for domination in commercial property, and 11% in agricultural land.
over the global economy, employing militarization. Despite the economic turbulence caused first by the
People in Europe and worldwide are drawn into wars Covid-19 pandemic and then by rising inflation and
against their will. In these conditions, we hear how interest rates, residential real estate ranked second
large international companies already speak about in terms of its increase between 2019-2022 (with
capital investments in the post-war recovery of 21.1%), succeeding gold, which has seen the most
countries, including their destroyed housing stock. significant growth in value (by 26.9%), and being
Plus, refugees feeling wars are faced with housing followed by debt securities with a boost of 17.8%.
shortages wherever they go. Housing continues to Real estate-based wealth is distributed unevenly in
be a business for capital, as it always has been under the capitalist world. Among the top 10 countries by
capitalism. There is a need for the left to take a radical real estate value worldwide, led by China and
position to condemn this. followed by the United States, there are also three
European countries (Germany, United Kingdom, and
The above processes took place in Europe while the France). Property value in Europe and North America
European Union, created as an economic union and accounts for almost half (47%) of the total value
single market, renewed its promises regarding an worldwide despite being home to just 17% of the
advanced social model several times. Diverse treaties global population (Savills World Research, 2023).
and strategies pledged to promote employment,
improve living and working conditions, guarantee Two sets of indicators best describe the housing
proper social protection, combat poverty and question in capitalism: one related to housing quality
exclusion, provide services of general interest, and and the other to financial affordability. In 2022, 16.8
promote economic and social cohesion. The % of the EU population lived in overcrowded
envisioned European social model could not deliver households, while the share of the EU population
these promises in the conditions of capitalism. In the unable to keep their homes adequately warm
past decades, it became evident that the EU wants increased from 6.9 % (2021) to 9.3% (Living conditions
to refrain from supporting public investments in in Europe, 2023). Moreover, the severe housing
public housing and regulating the housing markets deprivation rate among the poor (population earning
and investors because it obliges itself to serve the below 60% of median income living in an overcrowded
profit-making interests of private developers and dwelling while also exhibiting at least one of the
institutional landlords. We can see that there is always housing deprivation measures) increased at the EU
something more urgent to be done at the European level from 9.5% in 2019 to 10.2% in 2020 (Eurostat,
Commission than responding to people’s housing 2024a). This rate displayed a growth both in countries
needs. This includes the recent militarization and with lower levels of this indicator (for example, in
related increase in military spending that, again, Ireland from 2.3% to 5.3% and in Greece from 4.6%
distracts the Member States from putting in place to 9.2%) and in the countries with already high levels
measures ensuring social welfare for all. There is now of severe housing deprivation rate (e.g., in Hungary
a political and economic need to rethink the whole from 12% to 13%, and in Romania from 34.3% to
European construction as a socioeconomic union 35.7%).
framed by an internationalist perspective, assuring
peace and equal access to adequate housing for all

How expensive the the housing market has become Euro area, the mortgage loans as a percentage of
is reflected in Eurostat (2024c) data showing that GDP were 40% in the case of households and 10%
between 2010 and the third quarter of 2023, house in the case of non-financial companies, with the
prices increased by 48% and rents by 22%. Over this highest rates (100% and 30%) in Finland (Martins et
period, house prices more than tripled in Estonia al., 2021). In 2022, the mortgage loans as a percentage
(+210%) and more than doubled in Hungary (+185%), of GDP on the European continent were the highest
Lithuania (+158%), Latvia (+141%), Austria (+123%), in the United Kingdom and Switzerland with over
Czechia (+122%) and Luxembourg (+107%). 120%, followed by Finland, the Netherlands, and
Decreases were observed in Greece (-14%, with data Denmark between 80-85%, Spain and Norway around
available for 2010 and 2022), Italy (-8%) and Cyprus 65% and Belgium and France around 50% (Helgi
(-2%). Rents increased in 26 EU countries, with the Library, 2022). According to European Central Bank
highest rises in Estonia (+218%), Lithuania (+170%) (2020), in 2010, the average debt-to-income ratio in
and Ireland (+100%). The only decrease in rent prices the Euro area was 100.13%, with Spain displaying a
was recorded in Greece (-20%). These statistics only higher rate (131.12%) and France a lower one
partially reflect the reality of people’s lives in different (81.89%), while in 2022, for example, this rate
countries. To give just one example, price rises in decreased on average in the Euro area (to 93.97%)
urban areas of Greece have been substantial despite but increased in France (to 102.84%).
not being reflected in national statistics. In 2021, the
Bank of Greece estimated these price rises will be Living Conditions in Europe (2023) data reveal that,
between 10 and 14 per cent in 2022. The same in 2022, 69.1% of the EU population lived in owner-
applies in other contexts as well. Regarding the occupied dwellings: 44.4 % owned their dwellings
house-price-to-income ratio (Statista, 2024), which without being indebted to banks, whereas 24.7%
is calculated by dividing nominal house price by were owners with a mortgage. The rest were living
nominal disposable income (with 2015 set as a base in rented housing. Nevertheless, the high figures for
year when the index amounted to 100), in 2022, in homeownership do not mean that all the homeowners
the EU, it was the highest in Luxemburg (150.7%) are wealthy. In addition to the fact that not everybody
followed by Portugal, the Netherlands, and Austria from a household is the owner of the home in which
(above 141%), Czech Republic (134.2%), or Hungary, they live, there is also the case that in some countries
Spain and Germany (highest than 123%), and Ireland, there is no proper evidence on private rentals, which
Slovenia, and Greece (over 115%), and among the can be higher than the official figures. Additionally,
lowest in Poland (97.5%), Bulgaria (81.6%) and a comparative report (Hick et al., 2022) notes that
Romania (69.3%). 23 of the 28 European countries witnessed a decline
in homeownership and a growth in private renting
Furthermore, housing unaffordability is connected between 2005/2007 and 2016/2018. France, Malta,
to the costs of mortgage loans. European Central Czechia, Slovakia, and Poland are the only countries
Bank and Eurostat data show that in 2020, in the to experience an increase in homeownership, and
Figure 1. Housing cost overburden rate among homeowners with mortgages, 2014 and 2022, the author, source EU-SILK survey

in most cases, this is modest. It observes that processes” (EAC, 2019). Without repeating the latter’s
Anglophone countries show a consistent pattern, findings, which were designed to support housing
with both the UK and Ireland seeing a decline in justice activists at the grassroots, the present study
homeownership of more than 10% (the sharpest furthers the activist research on the topic with the
declines except for Slovenia); and Southern European potential to inform political decision-makers. In this
countries showed a clear tendency of decline, but paper, we use several studies as references, however,
only Spain has witnessed a very significant fall (almost not with the usual scholarly aim to further elaborate
10%), with Italy falling by around 5% and Portugal on theories and engage in scholarly debates but to
even smaller. extract from them information about the trends of
housing financialization in different phases of
Housing costs, including mortgages or rents when financialized capitalism and gain inspiration regarding
applicable, and in all cases, the expenses with utilities, the possibilities of de-financialization. We also employ
maintenance, taxes, and insurance, also mirror statistical information to characterize the housing
affordability. In 2022, 8.7% of the EU population crisis and the current poly-crisis in which housing
spent 40% or more of their household disposable financialization advances. In describing European
income on housing, Greece recording the highest Union policies that impact housing (financialization),
rates in this sense (26.7%), while other countries we appeal to documents of its institutions and briefly
reporting rates exceeding ten percent included the reconstruct how policy proposals evolved from the
Netherlands (10.0%), Germany (11.8%), Denmark papers of various actors active in this field. Our final
(14.7%), Bulgaria (15.1%), and Luxembourg (15.2%). aim is to put knowledge about housing financialization
The EU-SILK survey (2023) reflects that the housing in support of political action to create a non-profit
cost overburden rate by tenure status, for example, financial system that facilitates the mass production
among homeowners with mortgages, evolved of public housing. Eventually, we propose thinking
unevenly across countries (Figure 1). This percentage about ways to do this as part of a socialist alternative.
is higher among tenants who rent at the market price:
in 2022, it was over 35% in Greece, Bulgaria, and However, before we get there, Section I of the study
Spain, and grew higher than it was in 2014 in the describes in detail and through concrete examples
case of France (to 21.9%), The Netherlands (to 41.4%) how housing markets and their financialization
and Romania (to 42.6%), while the EU-27 average function. Chapter One presents general trends, as
was 20.8%. well as the shift from financialization through debt
to financialization through wealth, the specific sectors
3. THE AIMS OF THE PRESENT STUDY of the private rental market, and the different financial
actors that have transformed the housing market.
We acknowledge the housing-related issues exposed Chapter Two discusses the economic context marked
above and aim to reveal the economy and politics by the current global poly-crisis that reshapes the
beyond statistics and beyond the personal stories housing market trends. In addition, Section II focuses
through which they are experienced. Our study on policy-maker actors and processes. Chapter Three
describes the trends, sectors, and actors of housing outlines the contribution of the neoliberal EU policies
financialization that can be unveiled through to housing financialization. Chapter Four invites the
empirically based knowledge in the section entitled readers to learn about existing proposals to solve
MARKETS. The following section discusses POLICIES the housing crisis under financialized capitalism.
contributing to it and proposals to tackle the housing
affordability crisis. Besides this, we advocate to see Furthermore, we dedicate Section III to broader
the housing question as it evolves in CAPITALISM discussions about the housing question endemic to
and encourage the readers to look BEYOND it. capitalism. Chapter Five gives an overview of the
Therefore, the study shows how the housing question central role of the housing question in the capitalist
is written into the fundamental contradictions of this political economy. We encourage the readers to go
system, how housing inequalities overlap with the beyond the usual talk about neoliberalism toward
class inequalities inherent in the capitalist political understanding how capitalism inevitably creates the
economy, and continue to be reproduced even if, housing affordability crisis. This chapter also
nowadays, another stage of capitalism slowly replaces synthesizes the advancement of housing
the neoliberal era. financialization in different stages of capitalism,
culminating with its current financialized epoch. In
The present study was prepared for The Left in the Chapter Six, in the spirit of these findings, we argue
European Parliament by Enikő Vincze and Eva that the European left must consider conceiving and
Betavatzi, co-authors (with others) of the brochure implementing radical changes in the housing regime
“Housing financialization. Trends, actors, and as part of a socialist alternative to capitalism.

In the Epilogue, we eventually sustain that
democratizing finance and the practices of a centrally
planned non-profit financial system should inspire
left-leaning politicians to contribute to overcoming
housing financialization. Such initiatives cannot be
imagined without economic democracy in workplaces
and economic planning aimed at responding to
people’s needs in all territories. However, all-
encompassing discussions, including all relevant
aspects of the needed change, should be the subject
of another paper.

MARKETS
SECTION I.
//Eva Betavatzi
01
TRENDS AND ACTORS
OF HOUSING FINANCIALIZATION
housing affordability crisis, leading a growing part
In this chapter, through examples from several of the population into precarious living conditions.
countries, we offer details about the current
general trends in housing financialization; the B. HOUSING, A BATTLEGROUND FOR CLASS
evolution of the economic and political contexts STRUGGLE
that promoted a shift from financialization The main trends observed after 2014 are the rise in
through debt to financialization through wealth;, landlords, whether individuals or companies,
some specific sectors of the private rental including financial players, and wealth accumulation
market and different financial actors that have through housing. Investors and wealthy households
transformed the residential real estate sector, invest in residential real estate for various reasons
and more. rooted in several economic factors, such as stagnating
economic growth, low interest rates, fiscal policies,
and multiple crises (see Chapter Three).
1. GENERAL TRENDS
As a result, buy-to-let (BTL) purchases increased
A. FROM DEBT-DRIVEN TO WEALTH-DRIVEN across Europe, as did build-to-let practices. At the
DYNAMICS same time, access to mortgage credit for young
The political economy of housing has undergone would-be homeowners has proven highly complicated
significant changes in recent years. In a study in the past years, given the new regulations for
published recently in the International Journal of mortgage credit since the 2008 crisis. Today, one
Housing Policy, Cody Hochstendach and Manuel needs to possess capital to access homeownership,
Aalbers (2023) set out to illustrate a transition towards and young lower- and middle-class households are
housing market dynamics driven by wealth rather increasingly excluded from it. For wealthier
than mortgages. households, the transmission of wealth from
generation to generation has become particularly
Most researchers agree that the period of excessive important - and in some cases, governments have
mortgage debt reached a limit with the 2008 global even supported it through tax exemptions. In this
financial crisis (GFC) and the following years. sense, upper-middle class and wealthy households
Surprisingly, the housing market has not been affected have been privileged in residential ownership. Hence,
negatively; on the contrary, prices have continued the companies and financial actors investing in
to rise, yet debts have remained more or less stable. residential real estate benefited even more from
The mortgage-debt market expansion used to be advantageous fiscal privileges and other policies.
the leading cause of rises in housing prices, but things
have changed. After the GFC started a period of
significant transformations, investment through credit “Today, one needs to
was reinforced by investment through family and
business assets (including international funds),
possess capital to access
pushing prices up. As a result, landlordism grew, and homeownership, and
the wealth gap between tenants and homeowners
increased. New trends in housing financialization young lower- and middle-
orientated toward the private rental sector (PRS) took class households are
place everywhere in Europe. The PRS is still growing
in many European economies, with an increasing increasingly excluded
number of financial actors investing in it. The soaring
rents, especially in big cities, have deepened the
from it.”

The limitations imposed on mortgage credit pushed invest today with a high benefits rate. Homes as an
less-wealthy households toward the rental sector. asset are increasingly promoted by governments,
without whom all these transformations would not
At the same time, social housing shrunk where it have been possible. The essential question of who
existed because of austerity measures and neoliberal will guarantee the right to housing, if not governments,
policies, with households leaving the PRS as the only is worrying.
alternative to find a place to live. Consequently, the
private rental sector boomed, especially in urban D. UNDERMINING THE RIGHT TO HOUSING BY
centers, where prices have risen faster. These trends THE RIGHT TO OWNERSHIP
have led to more profound social and spatial The increase in housing prices, the growth of the
inequalities. private rental housing market, and the introduction
C. FROM THE MORTGAGE-DEBT MARKET TO into this market of large institutional landlords have
had and continue to have dramatic social
THE PRIVATE RENTAL MARKET
consequences, with a housing crisis that can be seen
There is a clear difference between the periods before in several ways. First, there is a housing affordability
and after the GFC. From the ‘80s until the 2000s, crisis, followed by an increase in housing insecurity,
mortgage debt played an essential role in the mainly due to shorter rental leases and soaring prices.
financialization of housing through securitization. Many households, from the most precarious to those
Indeed, mortgages were resold on the secondary of the middle class, are now forced to move to find
market in packages, which is how the financialization an affordable house. Gentrification and touristification
of housing started to develop in neoliberal economies. processes cause population displacements in many
This led to the subprime crisis, which resulted in the European urban areas. Homelessness has increased
financial crisis. as well. Evictions have risen, whether they are legal
or illegal, forced or so-called voluntary, collective or
To avoid repeating another crisis of a similar type, individual. The Kasbarian-Bergé law in France is an
public authorities decided to limit the mortgage unprecedented legislative breakthrough, making it
market. Nevertheless, this market is still going well easier to evict squatters and tenants in precarious
today, and the ideology of homeownership, which situations (Abbe Pierre, 2023).
is crucial to capitalism, continues to be promoted.
However, the mortgage market is less accessible to 2. ECONOMIC TRENDS
all, and property owners and financial actors mainly
benefit from it. Rents have become another primary A. MORTGAGE DEBT BEFORE 2008
source of profit, even for corporate landlords; that
Until 2008, mortgage debt increased everywhere in
was not the case before. Financial actors no longer
Europe, which was considered an indicator of housing
need risky mortgage markets with the liberalization
financialization (Figure 2). As the mortgage market
of the rental sector, the shrinkage in social housing,
expanded, it also transformed over the years into an
and new legislation that benefits landlords over
increasingly liberalized market, and housing started
tenants. As a result, the process of financialization
to be considered an asset rather than a basic human
of housing still goes on but in a different way, with
need. Through securitization, it was integrated into
dangerous social and economic consequences.
the liquid and global financial markets. The rise in
Homes are considered an asset more than ever
mortgage debt was one of the leading causes of
before. Investors see in them the less risky place to
Figure 2. Total outstanding residential loan to GDP ratio (%) in Euro area 19 from 2001 to 2013, Source: European Mortgage Federation (EMF)

price increases, at least in most European countries improve public finances (Davies, 2021). The case of
and cities, with some exceptions. Berlin is an early example of privatization and market
liberalization justified by austerity. Its case shows a
The increase in housing prices, in turn, was pushing form of housing financialization that preceded the
more and more households into debt, a way to self- 2008 financial crisis, unrelated to the mortgage-debt
regulate housing expenses and get a guarantee of market, which opened the door to private investors
a safe place to live in the long term and for future with substantial housing portfolios. Still, the most
generations. In other words, as the mortgage-debt prominent investors came after 2008.
market grew, prices rose, and the mortgage market
increased as prices rose. For many households, C. THE BURST OF THE MORTGAGE BUBBLE
housing was also seen as a means of wealth AND ITS AFTERMATH
accumulation. For banks, the increase in mortgage While private equity funds were buying vast housing
debt appeared to be very profitable. At some point, units in Berlin, the 2008 crisis triggered, and the
to grow further, the mortgage-debt market produced European mortgage bubble burst with a double
increasingly risky products with loan-to-value (LTV) effect: the buyout of non-performing loans (NPLs)
rates higher than the actual price of the house and by investment funds and the restriction of mortgage
loan-to-income (LTI), surpassing a debtor’s capacity lending for middle-class households.
to refund. For example, some mortgages were given
by considering the second income within a household. For many households, homeownership is not a
Expanding the mortgage-debt market was so possibility anymore (Figure 3). After the 2008 crisis,
beneficial that banks would lend in illegitimate the banking system imposed stricter income and
conditions without sufficient control from public property value lending criteria. Surprisingly, the
authorities. mortgage debt market did not decrease in all
countries: the Netherlands, Ireland, and Denmark
B. FINANCIALIZATION THROUGH THE RENTAL
had stable mortgage debt rates from 2013 to 2019
MARKET BEFORE 2008
(Hochstendach & Aalbers, 2023). What happened is
The case of Berlin illustrates a different form of that the rates of mortgage debt per homeowner and
housing financialization that took place before the of mortgage debt to GDP went down. Homeownership
2008 financial crisis, which is worth briefly commenting is concentrated in the hands of those already inside
on. The rental market was predominant in Germany, the game, the so-called “insiders.” The countries
with a significant social housing stock. After that did not have high ratios of debt to GDP saw it
reunification, large public housing estates and plots going up. The general trend was that mortgage debt
of land were sold for a pittance to investment funds. was more accessible to wealthier households or
In the early 2000s, Berlin faced a budget crisis that corporations, and the mortgage debt market became
prompted it to sell more housing to private investors a smaller part of local economies’ growth. As a result,
(Davies, 2021). As a result, financial players could a higher proportion of households entered the rental
buy large quantities of housing, with over 200,000 market.
units sold at an average price of just €20,000 per
unit (Aalbers & Holm, 2008). However, the revenue In several European countries, investment funds -
from these sales was not enough to cover Berlin’s vulture funds – saw an opportunity in the 2008
colossal debt, even though the privatization of a financial crisis. They started buying up NPLs from
large part of the rental stock was supposed to help banks, i.e., mortgages and other types of private
Figure 3. Owner occupation rates in Euro area 19. Source: EMF

debts that households were no longer able to repay households’ and businesses’ existing wealth and
for a variety of reasons, most often linked to the capital from financial and non-financial actors. This
effects of the crisis: falling incomes, cuts in pensions, phenomenon is described as a wealth-driven dynamic.
rising interest rates, and so on. On a macroeconomic From a certain point of view, the prices are more
level, purchasing these NPLs has been described as related to capital flows and detached from incomes.
a way of cleaning up the banks’ balance sheets. By Many researchers agree that the financialization of
getting rid of these so-called “rotten” loans, the the rental market began in the 2000s and has reached
banks could borrow again on the global financial higher levels in the past years. Rentier landlords, who
markets, or at least hope to do so in the future. come in all shapes and sizes, from small private
investors to major transnational property players, are
becoming stronger daily.
“From 2013 to 2020, Low interest rates have pushed investors into the
housing prices in housing market, as other types of assets (government
bonds and savings) have proved less profitable.
Ireland grew by 50% Risk-averse investors, such as pension funds, do not
and rents by 60%, have many options: either they invest in residential
property, which is still considered a safe investment
significantly increasing despite the 2008 financial crisis, or the assets of
so-called blue-chip companies. With lower interest
homelessness” rates, mortgage lending becomes cheaper; larger
debts are taken at similar costs, pushing capital
toward residential real estate. The rental housing
The European Central Bank (ECB) carefully supervised market, now perceived as another type of asset by
this whole process. In some cases, the ECB exceeded investors, forms an important part of the wealth
its powers to force the banks to get rid of their non- accumulation and reproduction strategy of affluent
performing loans as quickly as possible in favor of households and businesses.
the funds that bought them. This was the case in
Greece from 2018 to 2021 (Betavatzi & Toussaint, A flow of capital has entered the private rental sector
2021). By buying up these rotten loans, the vulture at the same time. Growing demand for rental
funds turned into landlords of an astronomical accommodation has been triggered by limited access
quantity of housing across Europe, particularly in the to homeownership through debt and fewer
Mediterranean countries of Cyprus, Greece, Spain, opportunities to benefit from social rent (due to
and Portugal, but also in other countries such as liberalization and privatization of the housing stock).
Ireland. Part of their business strategy had disastrous The rental market gradually became part of the
social effects: evictions of actual occupants and capital flow of the global market and was subject to
reselling or renting at higher prices of the acquired increasing financial considerations with increasing
properties. The selling-off of NPLs also pushed systemic risks. In larger cities, purchase prices have
households into the private rental market. risen faster than the average wage in one year (Ryan-
Collins & Murray, 2021). The rise in buy-to-let
D. THE RISE OF PRICES DUE TO THE purchases and new constructions have increased
FINANCIALIZATION OF THE RENTAL MARKET rents. The social effects are a widening gap of wealth
AFTER 2014 between tenants and homeowners.
Hochstendach and Aalbers (2023) observe that post-
crisis housing financialization is about decoupling 3. POLITICAL TRENDS
the rise in house prices and the increase in the number
A. HOMEOWNERSHIP AS A POLITICAL
of mortgage loans granted. While the amount of
PROJECT OF NEOLIBERAL GOVERNMENTS
private debt linked to housing stagnated, prices
continued to rise, although it would have been easy The increase in mortgage lending since the 80s was
to imagine the opposite. Holders of capital were promoted by the governments of liberal and
able to take advantage of the restrictions on neoliberal states until the financial crisis of 2008
homeownership. The mortgage debt market was through various policies, among which fiscal ones.
supplemented by investment in existing assets. This Owning your own home gradually became a socially
helped to keep prices high and even pushed them valued idea, to the point where certain everyday
up. Mortgages have not disappeared completely; expressions supported it. It was supposed to enable
they have been supplemented by investment of households to live without the burden of housing

expenses related to debt (after the repayment) or This was officially justified to prevent a new risky
rent and it benefited (neo)liberal governments that mortgage-debt bubble that could eventually lead
aimed to reduce their social spending. As a result, to a new financial crisis and, consequently, a public
the economic burden of housing affordability has debt crisis (Betavatzi & Toussaint, 2022). The
been shifted onto households. More generally, governments’ main goal for housing became to
private debt was highly encouraged as it benefited attract investment, domestic and global. Many types
most of the banking and, in turn, the financial system. of legal instruments were put in place. In most cases,
Promoting private property in the broadest sense Leasehold reforms were carried out in several
served as the basis of capitalist expansion with capital countries to benefit landlords rather than tenants.
accumulation and reproduction.
Evictions of home occupiers, i.e., tenants, auctioned
Mortgage loans pushed borrowers to behave like homeowners, and squatters, were facilitated through
investors, speculating on the future value of their measures like the so-called anti-squat laws in France
purchase price. Housing progressively became part and Belgium or the online auctions in Greece and
of households’ investment strategy as its value was Cyprus, to name only a few examples. Negotiations
bound to increase. At the same time, the financial around rents or debts turned out to be almost
players were slowly entering the residential market. impossible. Housing conditions became poorer, not
Until the 90s, real estate companies preferred only because of prices but also because most
investing in commercial (rental and office) markets corporate and private landlords, who aim to generate
but then started showing an increasing interest in profit, would not do the proper maintenance of their
the residential market as well. Property investment housing stock. Renovations, when carried out, were
was considered safe for all actors, not necessarily not necessarily of quality, and in some cases, led to
the most profitable but less risky than other ‘renovictions,’ i.e., evictions due to renovations
investments, with housing being the least risky. The leading to price rises. Massive private and public
idea of private homeownership reached the ‘lower’ investments also generated gentrification and
classes as well. Buying a home could mean touristification.
guaranteeing workers an income supplement or even
life insurance. Considering the lack of public money, one could
argue that governments did all they could to deal
Homeownership became a dream with the start of with the housing crisis. We would respond that things
rental market liberalization or due to the virtual could have been different if governments could
absence of the rental market in some contexts. With borrow in good conditions to create affordable public
reduced amounts of social housing and in a context and social housing. Taxing corporate landlords on
where landlords were more and more allowed to their rent profits could have gathered public money.
increase rents and shorten leases, people rushed It is thus a political decision to let things go the way
into homeownership. In some semiperipheral they do. Local and national governments and
countries, rent was subsequently more expensive European institutions push equity firms and
than buying, even with interest rates. In the countries institutional investors to exploit housing markets,
of Eastern Europe, the fall of socialism led to the especially after the GFC (e.g., the ECB pushed banks
privatization of the housing stock and the imposition to sell off their NPLs). Global capital almost presented
of private ownership for an almost total share of the itself as a “savior” after the 2008 crisis. Austerity and
residential property market, pushing households to the strict framework of the EU prevented much-
the same neoliberal logic as in Western countries, needed public intervention in housing policies.
i.e., the one of accumulating and reproducing capital
through homeownership. In the last few years, private The systemic risk has not been reduced; European
residential property has begun concentrating on housing markets have opened themselves to the
fewer hands, especially in major cities, and the rental global financial market with no guarantee of success
market is taking over. in the long term. The housing crisis is already
deepening. On top of that, in the case of a financial
B. TOWARDS THE END OF SOCIAL HOUSING market crash, like the one occurring at the beginning
AND THE DEEPENING OF THE HOUSING of the COVID-19 pandemic, public wealth will have
CRISIS to go to the financial system again. Berlin tenants
carried out a vast campaign to expropriate corporate
After the GFC, stricter borrowing practices were
landlords and socialize their housing stock. It resulted
imposed on households. Public institutions
in a referendum in 2021 with a million votes in favor,
deliberately limited access to homeownership to
showing massive opposition to these neoliberal
households that already held capital, those with high
policies IEB, 2022). Things would have been much
incomes, and financial and non-financial companies.

different if the model based on homeownership private rental market, with global real estate and
through debt was replaced by social housing. equity investors rapidly showing interest in it. The
institutional investors became the country’s largest
private landlords, focusing mainly on Dublin and its
“Mortgage loans surroundings (Lima et al., 2020). It was the GFC that
triggered this financialization process through two
pushed borrowers to main mechanisms. The first was NAMA, the National
Asset Management Agency, created in 2009. It aimed
behave like investors, to attract vulture funds, equity, and real estate funds
in Ireland to purchase distressed assets and loans
speculating on the after the 2008 financial crisis. The second was the
future value of their

REITs and their tax mechanisms implemented in 2013
(see section about the actors of financialization). From
purchase price.” 2013 to 2020, housing prices in Ireland grew by 50%
and rents by 60% (Byrne, 2020), significantly increasing
homelessness (Reynolds, 2021).
C. THE PRIORITIZATION OF CAPITAL D. THE PARTICIPATION OF PUBLIC

INVESTMENT AND ACCUMULATION AUTHORITIES IN INTERNATIONAL REAL
ESTATE FAIRS
The rental market has been progressively liberalized
in several ways: the stock of social housing was Social housing used to play a significant role in rent
reduced (sale of housing units and privatization of regulation. In sufficient quantity, social housing could
social landlords), the eligibility criteria for social act as a barrier to price rises in the private rental
housing changed and became stricter, tax measures sector. Nevertheless, the PRS have been actively
started favoring private landlords over social ones, transformed by governments’ liberal agenda and
price ceilings or criteria were modified to let prices urban planning policies favoring the arrival of global
go up, and the legal duration of leases was shortened. capital.
Smaller and more flexible housing solutions like
co-living projects appeared and had a negative social It is worth outlining at this point that more and more
impact. They rapidly increased the value of a single local and national authority representatives are taking
housing unit, commodified the idea of flat sharing, part in international real estate fairs such as MIPIM,
and even introduced it to the financialized market. the international market for real estate professionals
Urban planning regulations and the sale of public (le Marché International des Professionnels de
land were also part of this liberalization scheme. This l’Immobilier), which takes place every year in mid-
general overview of what produced the liberalization March in Cannes. It is the most significant real estate
of the private rental sector was operated differently fair worldwide. It brings together investors, real estate
according to the context by both local and national agents, constructors, and elected representatives
authorities. worldwide, especially from European cities and
countries. Most of the discussions held there focus
For example, Amsterdam had 85% of regulated rents on residential property.
in the mid-1990s. In the 2010s, a change in the system
for valuing rents made it easier for landlords to The participation of public authorities’ representatives
liberalize the rents on their properties. As a result, illustrates their role in the financialization process
54% of private housing units were liberalized in 2019, (Guironnet, 2022). However, we believe that this is
compared with 18% in 2003 (Hochstenbach & Ronald, contrary to the objective the local and national
2020). In Lisbon, where public investment in housing authorities should be pursuing, which is to enable
is almost non-existent, a large part of the social the population to have access to decent housing
housing stock remained vacant for many years without discrimination, something that public social
because it would not be renovated. Pushed by the housing provides. With the residualization of public
public authorities, global capital presented itself as social housing and the quest for capital, European
the only solution to meet the growing demand for governments are now acting in favor of investors and
housing, with financial players determining the the concentration of capital. On the contrary, they
content and way the city’s future housing stock will should have worked to maintain and expand social
be built (Lima, 2023). housing, one of the main levers of collective wealth
(see Chapter Six).
Ireland provides a relevant case study as it has
experienced a significant increase in renters in the

4. FINANCIALIZATION OF VARIOUS international students, partly because of Brexit. While
HOUSING MARKET SECTORS the Irish government has been encouraging the
financing of student housing for almost a decade,
A. STUDENT ACCOMMODATION the student housing crisis remains deep since the
housing units created by the investment funds are
The financialization of student housing has opened only aimed at a wealthy population. They appear to
the way to the financialization of the private rental be luxury student accommodations. For Reynolds,
market (Beswick et al., 2016). Today, the phenomenon these created a rise in housing exclusion and even
is particularly worrying. A look at data from the Savills homelessness in the student population. Student
property consultancy group (Savills, 2021) based in protests were held against the financialization of
the UK reveals that in 2021, the total volume of student housing, one of them being the Shanowen
investment in student housing will have reached €5.8 Shakedown campaign. These protests partly
billion, a lower figure than in 2020 when Blackstone succeeded in limiting rent increases and some
acquired UK student housing for €5.4 billion. The student protections for those living in PBSA.
group expects this figure to almost double over the
coming years. The UK accounts for most of the funds B. THE CASE OF NURSING HOMES
investing in student housing on the continent, but
investors are spread across Europe from the Retirement homes are both care centers and homes
Mediterranean cities to the Scandinavian. for the elderly. The aging population and the lack of
public investment have led to the financialization of
According to Savills, the European PBSA (Purpose part of this sector. Nevertheless, the financialization
Built Student Accommodation) market remains the of nursing homes has probably not had the same
most attractive, with investment from European, effect on the private rental market as the touristification
Asian, Qatari, and Canadian funds. From 2008 to of housing or the financialization of student
2019, Global investment in PBSA was more than four accommodation. It also seems less developed in the
times greater than in 2008. Who are the buyers: EU than in the UK, Canada, or the USA.
private equity and core buyers, and core+ buyers,
i.e., financial players who take more risk than the Nevertheless, we thought it would be interesting to
others. PBSA offers better returns than conventional take a brief look at this aspect of the financialization
housing. As for the private rental market, the more of housing. With the aging of the population, the
money an investor has, the more likely he is to take need for nursing homes has grown, leading to the
a big part of the share. Financial actors have massively creation of specific REITs called HC-REITs (Health
invested in student accommodation, which was seen Care Real Estate Investment Trusts) at the end of the
as an excellent opportunity to balance their portfolios 2000s in the hope of boosting the opening of
during an economic downturn, leaving less space establishments for the elderly, but these initiatives
for wealthy households’ investments. have had contrasting effects. HC-REITs were first set
up in the United States in the 1980s to provide and
Ireland has been particularly hard hit by the manage long-term care facilities by leasing them to
financialization of student housing, with public service providers. These included nursing homes,
policies opening the door to it. The student population clinics, and hospitals. These listed entities have had
has risen sharply, particularly in Dublin (34% in ten limited success in France, whereas, in the United
years), and a notable lack of adequate public Kingdom, the financialization of nursing homes has
investment has exacerbated the pre-existing shortage led to an increase in rents, a balance of power clearly
of suitable accommodation to cover needs. Therefore, in favor of the lessors, and a depletion of the resources
the government launched a National Student of social security funds, with the result that people
Accommodation Strategy in 2017, encouraging who have access to care need to finance it themselves
private investment and creating a boom in PBSA (Aveline-Dubach, 2020).
development by global institutional investors. Tax
C. TOURIST HOUSING SECTOR
measures and favorable planning regulations, such
as the Strategic Housing Developments, introduced In 2023, Wijburg, Aalbers, Conte, and Stoffelen wrote
in July 2017, which allow for a fast-track planning a joint paper on tourism-led rentier capitalism (TLRC)
process, have contributed to a surge in investment and how it transforms urban and rural areas. They
(Reynolds, 2021). Çelik goes so far as to claim that define it as the sum of actions led by different kinds
the Irish state has played the role of a “market maker” of tourism property actors. TLRC seeks rent extraction
in the development of the financialization of student as a spatial fix for over-accumulated capital (Harvey,
housing (Çelik, 2021). The situation does not bode 1982), as do other sectors of the rentier market. A
well, given that Ireland is attracting more and more

focus on TLRC is interesting here because of its 5. MAIN ACTORS IN THE
particularities in economic and spatial expressions. FINANCIALIZATION OF RESIDENTIAL
Investment in tourism is driving up property prices, REAL ESTATE
whether for land or buildings. The transformations There is considerable diversity among the financial
generated by the TLRC do not necessarily serve players in the residential market, between those who
society; on the contrary, its socio-spatial manifestations want to take risks and those who do not, those who
are diverse, and we will attempt to list some of them. are looking for short-term profit, and those who are
Firstly, the TLRC generates a general price rise, with pursuing medium- to long-term objectives, those
a particular effect on rents. Secondly, an increasingly who buy existing stock and those who build to let.
blurred boundary between tourist properties and We call them “financialized landlords,” “corporate
housing does not favor permanent residents. A new landlords,” “institutional landlords,” or even “Cuckoo
trend in the transnational sphere is significantly funds” in Ireland because they buy in bulk residential
impacting the residential property sector: the property that homebuyers could have bought
emergence of digital nomads, the increase in (Hearne, 2020). Their role is to bridge financial capital
expatriate communities or those living in several to housing and urban development.
countries over a year, and the ultra-mobile middle
classes and elites. The researchers also highlight the A. PRIVATE EQUITY FIRMS
role of governments, which in many cases facilitate Investment funds and investors create partnerships
the emergence of tourist areas, mainly through tax through private equity firms that usually buy, manage,
breaks for expats and retirees, as well as new forms and sell companies on their behalf to generate profits.
of citizenship (golden visas). The TLCR is generally Real Estate Private Equity (REPE) has the same
generating major urban transformations, with purpose, but its main activity concerns real estate
gentrification and touristification of city centers, instead of firms. They buy buildings, develop real
neighborhoods, and rural areas. estate projects, and rent or sell them for sometimes
huge profits. They specialize in more speculative
In their study, Wijburg et al. (2023) show that investors strategies than REITs, such as buying low and reselling
in this sector are very diverse but have a common at the highest possible prices.
interest: to create a boom in the tourism industry
and drive up property prices to extract rentier value. One of the most known REPE is Blackstone. Blackstone
Short-term rental is often associated with Airbnb, is an asset manager for individual and institutional
but this also applies to other short-rental platforms investors, including pension funds. It has invested
and the new working models affecting the populations significantly in PRS worldwide and in European
described in the previous paragraph. The TLRC countries. Its investments are considered harmful to
generates as much investment in residential property populations that saw their right to housing in danger.
as in commercial or leisure property. REITs and private Blackstone’s massive acquisition and activity to
equity funds are increasingly investing in tourism extract profits for rentier capitalism have diminished
property. Technology and digital platforms have housing affordability and increased evictions,
played a vital role in the sector’s development. While homelessness, and housing-related poverty (Birchall,
the capital invested in the TLRC is global, its effects 2019). Their investments were so massive that they
are highly localized. The economic and spatial contributed to reshaping whole neighborhoods and
consequences can be dramatic: rising prices, even cities’ housing markets, also affecting future
neighborhood transformations (disappearance of generations.
schools, local shops, and health centers), displacement
of the local population to benefit the development
of the tourist sector, a crying lack of adequate
housing, and others. Inequalities are growing. Tourist
properties are absorbed into the financial sector,
increasing the abovementioned effects.

B. HEDGE FUNDS gain, which makes them so attractive. BlackRock is
a R-REIT.
A hedge fund works quite similarly to a private equity
fund in that it collects capital from multiple investors, D. PUBLICLY LISTED REAL ESTATE FIRMS
invests it to create a return, and distributes it as a
dividend. It can invest in securities or other types of Publicly listed real estate firms are those listed on
investments. Hedge funds are known for taking more the stock exchange. Shareholders may be individual
risks than other mutual funds, and regulations do not or institutional investors in the same way as other
cap their leverage. listed companies. The main aim of these companies
is to make profit from renting, buying and selling
Only some hedge funds invest in real estate, and property assets, whether residential or
they are called real estate investment funds. These non-residential.
specified hedge funds have two main investment
strategies: they invest in publicly traded real estate E. REAL ESTATE-RELATED SERVICES
companies, mainly REITs, or directly through the Real estate-related services offer services for the
acquisition of real estate properties in distressed management of credit portfolios and real estate
areas or markets at meager rates. Cerberus Real assets to banks and investors. They deal with the
Estate Capital Management is a hedge fund. The so-called “debt-settlement” of individuals,
effects of its activities are similar to those of REPEs. companies, and affected groups, propose property
“opportunities” to potential buyers, and can also
C. REAL ESTATE INVESTMENT TRUSTS deal with auctions.
A Real Estate Investment Trust (REIT) is a company
that allows investors to pool capital. It owns, operates,
or finances property to generate income for investors
so that they can, in turn, receive dividends without
having to buy, manage, or finance property projects
themselves. REITs often specialize in particular
property sectors, but this is not always the case—
some portfolios are diversified.
The R-REITs (Residential Real Estate Investment

Trusts) seemed to be owned by relatively
homogeneous investors, some heavily backed by
pension fund capital (Aalbers et al., 2023). Most are
listed on the stock exchange, and their assets are
sold and bought back, making them liquid instruments
in financial jargon. Others are not, and there are also
so-called private REITs. Some REITs invest directly in
property, rent out their assets, collect the rents, and
redistribute them as dividends - these are known as
equity REITs.
Others specialize in mortgages and do not hold

property directly but finance property projects - these
are Mortgage REITs. These REITs earn interest on
the loans they grant and operate similarly to banks.
Finally, some REITs are hybrids. REITs are regulated
to a certain extent. To obtain a REIT license, you
need to own property that generates income over
the long term and can redistribute the profits to
shareholders. Real Estate Investment Trusts were
created in 1960 in the US by President Eisenhower
but have been active in residential real estate only
after the global financial crisis. REITs cannot exist
without a national legal framework that enables them.
Legally they are offered tax reductions on capital

02
THE CURRENT POLY-CRISIS
AND ITS EFFECTS ON
THE HOUSING MARKET
to housing and the city in different European contexts
In this part, we will analyze how the multiple (EAC, 2020). In total, 16 member groups actively
crises we have been going through in the participated in the survey, and six others provided
past years - the pandemic, the cost-of-living important information, which we will briefly recall
crisis, and the war in Ukraine - have here. We will also try to understand how the Covid-19
contributed to amplifying the housing crisis crisis has had a longer-term impact on the housing
in terms of affordability, accessibility, and situation today. We believe that it has contributed
quality of living, and the way it was used as to exacerbating social inequalities and that it has
an opportunity to create ground for further provided an opportunity for the development of the
liberalization. We will not refer to the financialization of housing.
climate crisis and its impact on housing
rights, even if it is of great importance, The EAC members agree that social protection
because a fully-fledged study would be measures have proven insufficient. Priority has been
needed for this. given to financial aid for businesses, the banking and
financial sectors rather than households. Nevertheless,
there were several forms of support to households,
1. THE PANDEMIC such as rent subsidies and deferred payments on
rent and mortgages. Deferred payments did not
During the pandemic, the issue of housing took on constitute a reduction in rents or mortgage debts,
an important dimension, as measures to prevent the even if rents were far too expensive already before
spread of the virus focused mainly on what were the pandemic. A reduction or even a cancellation
known as lockdowns, i.e., staying at home. In addition would have been necessary at the start of the health
to being a right, having a home and staying at home crisis, as noted by a Belgian activist (Action Logement
became a social duty to protect others. However, Bruxelles, 2020). Instead, what happened was the
not everyone had a home of their own to stay in. creation of private micro-debt between insolvent
Others, who were already living in precarious tenants and their landlords or between owner-
conditions - unsuitable, poorly insulated, dark, humid, occupiers and their banks. Several groups in Spain,
in basements, overcrowded - or who were living with the UK, Portugal, Cyprus, and Greece denounced
their parents, with violent partners, etc., had to this phenomenon. While deferred loan payments
endure the problems they were already experiencing were implemented, interest continued to run,
with even greater intensity when they were confined. resulting in an even greater accumulation of debt.
Lockdowns were also a time of deprivation of public There have been differences in financial support
space, which was in many cases imposed violently, between countries and local contexts, but what has
with restrictions on movement and assembly been observed in most is that homeowners were
monitored by the police and sometimes even the more advantaged than tenants, who received more
army. For the movements for the right to housing payment facilities more quickly. Neoliberal
and the right to the city, the European lockdowns, governments chose to protect landlords and owner-
whatever form they took, dealt a heavy blow to the occupiers more than tenants because central banks
fundamental rights of residents to private and public were primarily concerned with protecting the banking
space and freedom of movement and assembly. system from the effects of the health crisis, which
had exacerbated a financial crisis in the making
A. TESTIMONIES ON PEOPLE’S SITUATION
(Toussaint, 2020).
DURING THE HEALTH CRISIS
After several months of health crisis, the European The health crisis led to a disruption in the production
Action Coalition for the Right to Housing and to the and supply of goods and services and, therefore, in
City (EAC) surveyed its members to assess the impact work, which had a major impact on household
of measures to combat COVID-19 on people’s rights incomes, particularly for the most vulnerable. They

had no way of cushioning the blow. As a result, a loans. In exchange, they will have to promise part of
large proportion of the population, both documented their incomes for the next years or decades. A
and undocumented, defaulted on their debts and mortgage loan, therefore, constitutes a long-term
payments. The risk of losing one’s home increased promise of work and even of income, which is already
considerably. To avoid a massive wave of evictions, a problem in itself if we consider that the neoliberal
moratoria were imposed either partially, i.e., under capitalist economy is in perpetual crisis and that in
certain conditions, or totally, but with very partial this context, a promise of income for the years to
long-term effects. In some cases, such as Romania come is largely a matter of speculation, regardless
and Portugal, the rules differed enormously between of the debtors’ own intentions. Indeed, the latter will
localities, which could render decisions taken at the be unable to control the effects of an economic crisis
state level null and void. The police and military on their work and income, as shown by the situation
presence in cities increased, and this still has an of millions of insolvent debtors after the 2007/2008
impact at the time of writing. The text drafted by the crisis - the current situation linked to the Covid-19
EAC reports the case of a Roma camp that was literally pandemic could well be just as problematic for debtor
surrounded and guarded by the army in times of households” (Betavatzi & Toussaint, 2021).
lockdown. Homeless people have also been attacked
in several contexts because they were illegally C. THE FINANCIAL SYSTEM BENEFITS FROM
occupying public spaces. Several countries, including THE CRISIS
the UK, Germany, the Netherlands, and Belgium, to As households struggled to make payments and
name but a few, opened hotels to the homeless. borrowers were offered new repayment schedules
This showed that it was possible to find the beginnings with no reduction in their debts, the banking and
of accommodation solutions, even if they were quite financial systems proved to be the big winners of the
inadequate, but also that the measures were only Covid-19 crisis. The banks were able to borrow at
temporary and that the crisis did not provide an negative rates for some time, and they were able to
opportunity for things to change radically and for operate on a lower capital rate, allowing them to
housing to become a right. resume their activities under new conditions that
were almost like those prior to the 2007-2008 crisis.
B. THE PERPETUATION OF ILLEGITIMATE DEBT
The European Central Bank (ECB) intervened with
What we have learned from the effects of the health large injections of liquidity to the banks to protect
crisis on the right to housing is that the measures shareholders and avoid bankruptcies (Toussaint,
put in place by governments in times of crisis were 2020). This has led to even greater financial
not enough to protect people from losing their homes concentration. The downturn in certain sectors, the
or taking the risk of losing them, and even less so crisis experienced by many companies, the need for
the most vulnerable. Above all, public institutions public intervention to save shareholders, etc., all
have worked to protect the banking and financial reinforced investors’ move towards “safe haven”
systems by providing the necessary guarantees that assets and led to an increase in their activities in the
debts will be repaid, and prices maintained, even real estate market, particularly the residential market.
though household incomes have been severely Some companies have taken advantage of the supply
impacted by the shutdown of certain economic problems caused by the health crisis to make
sectors and the strong impact on others. additional profits. The already socially dramatic
situation caused by the coronavirus was compounded
As with all crises, capitalism has socialized the losses by illegitimate increases in prices, debts, and profits
associated with the pandemic. The right to property for holders of capital (Vincze, 2024).
took precedence over the right to housing, despite
the requirement to have a home and to stay in it. 2. THE WAR IN UKRAINE
Moratoria on evictions failed to stop all evictions;
landlords were and still are at an advantage over Russia’s invasion of Ukraine was a shock for the whole
tenants and banks over borrowers. Instead of freezing world, as well as for Europe. A few months after it
prices, governments have opted for the creation of began, on 24 February 2022, 12 million people had
private debt and the accumulation of households’ fled because of the war, and 5 million to neighboring
obligation to pay. We consider these debts to be countries, according to a report (FEANTSA, 2022).
illegitimate, as shown in earlier studies: “The gap This figure has been estimated at 7 million by the
between a person’s income and expenses can be United Nations Refugee Agency in August 2022.
bridged by debt. When buying a house, a flat, or Most of those who fled the war were women, children,
another type of housing, prospective buyers will and the elderly, according to Lazaros Petromelidis,
generate an expenditure that greatly exceeds their Director of the Greek Refugee Council (UNHCR,
current incomes by asking their banks for mortgage 2022). This has had a considerable impact on

homelessness and, more broadly, on the housing processes already underway. The Poznan tenants’
situation in Ukraine and neighboring countries. The union (Wielkopolskie Stowarzyszenie Lokatorow -
whole of Europe immediately showed great solidarity Poznan) made a similar observation. In Poland, it is
with Ukrainian refugees. Governments and the EU the arrival of Ukrainian refugees that has caused rents
tried to back up this solidarity with a wave of measures to rise. It is estimated that rents rose by 30% in Poznan
and legislation to facilitate Ukrainians’ movement at the beginning of April 2022. Poland is the country
within the EU and (partially) ensure that their social that has welcomed the most Ukrainian refugees, and
rights were respected. The Temporary Protection this has had a remarkable effect on the rental market.
Directive, which aims to offer rapid and effective The liberalized market has opened the door to
assistance to refugees fleeing a conflict, was triggered increased profits for landlords, who have seized on
for the first time by the Council, following a proposal the arrival of a population in distress to raise rents.
from the European Commission. This directive had It has also endangered “locals” who have had to
been adopted in 2001, 21 years earlier, after the cope with the situation.
conflicts in the former Yugoslavia. It is interesting to
note that it had not been triggered until then following B. SPECULATION CONTINUES EVEN IN TIMES
any other war. Funds have also been released, and OF WAR
Member States have been guided to aid Ukrainian Surprisingly, rising prices have also affected Ukraine.
refugees, particularly in terms of housing, with the The western regions of Ukraine have seen a boom
Safe Homes initiative. in the private rental sector. Between October 2021
and May 2022, rents rose by 96% in the Lviv region,
Enormous number of people have lost their homes 225% in Uzhgorod, and 128% in Frankivsk, and then
because of the war. FEANTSA highlighted the role fell back slightly (Transparency International, 2022).
played by organizations in neighboring countries This has made the market unaffordable for many
(Poland, Hungary, Romania) in providing shelter for internally displaced persons (IDPs), but also for local
homeless people and welcoming refugees from people. According to some estimations, many
Ukraine. Abandoned housing has been renovated evictions have taken place because of soaring prices,
in Poland, while temporary reception centers have even though there are no official figures to prove
been transformed into longer-term accommodation this (Liasheva, 2022). The problem, the author says,
centers for families in Budapest. This was not enough, is that there has been no form of price regulation.
however, as solutions had to be found in the private What is more, the lack of social housing was clearly
rental sector or private homes, albeit on a temporary felt during the war, with a few exceptions, such as
basis. In Romania, people hosting citizens arriving when local authorities created some non-market
from the armed conflict zone in Ukraine received housing, such as in university dormitories. In some
monthly cash payments from the state (50 lei per cases, negotiations between IDPs and landlords were
person per day for housing and 20 lei per person facilitated by the local authorities. Ethnic minorities
per day for meals). The various measures applied by have been discriminated against in several cases.
the various countries were not applied in the same Overall, housing policies, even in times of war, tend
way to all refugees. Those from ethnic minorities, to benefit developers rather than residents.
such as the Roma, have been discriminated against,
as several sources have testified. Local Roma people As in most post-Soviet countries, Ukrainian housing
suffering from housing deprivations for ages could policy focused on the privatization of housing in the
feel that they were neglected again while the 1990s, support for access to private property
government and people helped refugees from a privatization of housing in the 1990s, and support
foreign country. for access to private property and mortgage loans.
Even before the war, Ukraine suffered from a crucial
A. RISING RENTS IN NEIGHBORING
lack of social housing and regulation of the rental
COUNTRIES
market. In short, the public sector has not been
In several Eastern European cities, including Poland, involved in the housing issue for decades, as has
Romania, Hungary, Serbia, and elsewhere, house been the case in other post-Soviet contexts. Even
prices have risen. In Serbia, members of the anti- the annexation of Crimea, or the war in Donbas in
eviction group The Roof have reported a sharp rise 2014, did not lead to a change in housing policy; on
in rents following the arrival of Russian refugees, the contrary, people displaced by these conflicts
estimated at 200,000 (EAC, 2024). According to the were pushed into private ownership. As a result, most
group, an influx of Russians has settled in the cities of them remained in a precarious housing situation.
of Belgrade and Novi Sad, as well as in smaller towns. With the Russian invasion of Ukraine, the housing
In some parts of the city centers, rents have even policies proposed remained the same: public aid for
doubled, which in turn has boosted the gentrification access to property, apart from the few temporary

solutions proposed. The effects were and are even and the surrounding states to disinvest even more
more devastating because the scale of the catastrophe from the welfare state and increase public investment
is immense. in the military sector. The war in Ukraine is also an
opportunity for European countries to become
C. THE FINANCIAL SECTOR CALLED UPON TO independent of Russian gas. This feeds the large
REBUILD UKRAINE chain of profiteers (producers, distributors, and
In August 2023, it was estimated that 1.4 million traders) who have taken advantage of the Russian
housing units had been affected by the war, a third invasion to justify an increase in energy prices in
of them destroyed on the Ukrainian side (Global Europe and, consequently, and their profits (Vincze,
Shelter Cluster, 2023). The need for temporary 2022). Using arguments such as Russia’s invasion of
accommodation is enormous, and those for Ukraine to justify unjustifiable price increases at a
permanent housing are even greater. Even in times time when dividends for energy company shareholders
of war, Ukraine is under severe economic pressure have exploded is a way of silencing any opposition
because of its ever-increasing public debt. Even to the liberalization of the gas and energy markets.
though some creditors have granted moratoria on The war in Ukraine has thus created the opportunity
debt repayment, it still has to repay the IMF and for a new crisis, which has had a major impact on
private creditors (Toussaint, Yurchenko & Dhar, 2023). people’s right to housing, and on the cost of living,
The aid granted to the country is a debt to be repaid discussed in the next section.
and jeopardizes the possibility of developing social
and public housing in the future (Liasheva, 2023). 3. THE COST-OF-LIVING CRISIS
Regarding reconstruction and rehabilitation, it is Eurostat data related to this subject shows that
shocking to read calls for help from investment funds. between August 2021 - August 2022, in the Euro
The reconstruction of the country is presented as a area, inflation rates in energy prices were around
“unique opportunity” for the private sector, as a 40%. The EU average inflation rates in 2022 for
publication by the US Chamber of Commerce (2024) housing, water, electricity, gas, and other fuels
attests: “Ukrainians are lionhearted on the battlefield increased by 18%. For example, in Belgium, general
and resilient in the business field. Ukraine is open inflation rates increased from 0.5% in 2014 to 10.3%
for business. Now is the time to look at Ukraine in 2022, in Estonia from 0.5% to 19.4%, in Lithuania
because the biggest recovery of a nation in Europe from 0.2% to 18.9%, in Romania from 1.4% to 12%,
since World War II has already begun. The role of and in Hungary from zero to 15.3%. As a response
the private sector will be massive – do not miss this to inflation, the central banks increased the interest
opportunity.” rates across the world, as Figure 4 illustrates with
some examples (Eurostat, 2024b).
D. OPENING THE DOOR TO THE COST-OF-
LIVING CRISIS Figures 5 and 6 show that the price increase for
Some analysts see the war in Ukraine as a war in electricity and natural gas was highest in Romania,
which capitalism is trying to overcome its crises and the Czech Republic, Lithuania, Latvia, and Denmark
survive. It is an “opportunity” for the Ukrainian state (Eurostat, 2023).
Figure 4. The three-month interest rate between 2022/09 and 2023/07, the authors, Source https://ec.europa.eu/eurostat/databrowser/product/page/TEIMF040

Figure 5. Change in electricity prices for households, the second half of 2022, source: Eurostat, https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230426-2
Figure 6. Change in natural gas prices for households, second half of 2022, source: Eurostat, https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230426-2

The new rise in energy prices added novel extra The research group of the European Action Coalition
burdens on households’ budgets, which have for the Right to Housing and the City (EAC, 2024)
continued to suffer from the continuous increase in has carried out an internal study to find out how the
housing prices and private rents in the last ten years, cost of living has affected the ongoing housing crisis.
according to Figure 7 (Eurostat, 2024c).
Figure 7. House prices and rents, 2010 Q1 - 2023 Q3, source https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20240110-2
The average percentage of household consumption The study has recently been published and consists
for housing, water, electricity, natural gas, and other of two parts: the first looks at the systemic causes
fuels grew above 25% in 2020 and 2021; however, that have led to rising energy prices and inflation,
it was quite high even before (for example, 24% in and the second consists of responses from several
2012). There are differences among countries in this member groups to a questionnaire carried out by
regard, as Figure 8 reflects (Eurostat, 2023b). the EAC’s research group.
Figure 8. Final consumption of households for housing, water, electricity, gas, and other fuels, 2013 and 2019 (2022, where available), the authors, Source, https://ec.europa.eu/
eurostat/databrowser/view/nama_10_co3_p3/

A. HOW WERE PEOPLE AFFECTED, AND WHAT when the eviction is not declared as such but is the
GOVERNMENTAL PROGRAMS DID result of a decision to leave home before being
officially evicted, or a breach of lease that is not
The questionnaire applied by the survey consisted
counted as an eviction. In some cases, as the rise in
of six questions, which we reviewed briefly. We
energy prices has led to widespread inflation, this
believe that this work with grassroots movements
has further limited the ability of households to pay
fighting for the right to housing and the right to the
their housing costs. In France, rent arrears for social
city provides an essential basis for understanding
housing have increased. In Belgium, rent regulation
how people’s right to housing has been affected by
has been introduced in the three regions according
rising prices in general and energy prices in particular.
to the energy performance of buildings, with
The member groups that responded to the
sometimes perverse effects: landlords have either
questionnaire came from eleven different countries:
decided to renovate their properties and evict tenants
Belgium, the Netherlands, France, Austria, Greece,
to do so, or they have not done so, and properties
Spain, Portugal, Romania, the Czech Republic,
that were not in good condition have remained that
Sweden, and Serbia.
way. The rise in the price of materials has affected
landlords’ ability to renovate and would-be buyers
When asked how the energy crisis affected people’s
to purchase a home. In the Netherlands, to deal with
housing conditions, almost all the groups replied
rent arrears, the government set up a payment plan
that households had been greatly affected as they
in instalments, which only postponed the risk of
were facing higher bills in 2021 and 2022 than before.
eviction for households unable to pay. Public subsidies
As a result, most have had to save energy or find
have had a limited effect on households’ ability to
alternative ways of heating or cooking. Certain ways
pay. In the Netherlands, tenants were more affected
of life have been affected: spending less time at
than homeowners, while in Greece, insecure
home, resorting to donations of prepared food to
homeowners who could not pay their electricity bills
avoid cooking, living in overcrowded homes, etc.
were faced with power cuts, which constitute a form
The responses also show that public subsidies, or
of eviction. Young people in Greece and Portugal
the indexation of wages and contributions, have often
have chosen to stay longer with their parents, while
been insufficient to enable households to pay their
others are living in extremely precarious conditions.
bills. The precarious housing conditions became even
In Romania, overcrowding rates have increased. In
more apparent with the reduction in energy
Spain, it was pointed out that in some cases, the bills
consumption imposed by rising prices. Variable-rate
are in the landlords’ name, which means that unpaid
contracts began to replace fixed-rate contracts,
bills can have the same effect as unpaid rent,
increasing price volatility and uncertainty for decent
increasing the risk of eviction.
living conditions. In some contexts, such as Vienna
and Stockholm, rising energy prices have led to an
The third question in the survey concerned the links
increase in rents. More and more households have
between the cost-of-living crisis and the housing
had to go into debt in order to continue heating their
crisis. In most countries, the EAC member groups
homes, while in some cases, such as Greece, indebted
that took part in the survey noted a rise in the price
households have suffered power cuts. In Romania,
of materials and interest rates, leading to an increase
people living in extremely precarious conditions have
in the price of construction/renovation. In turn, this
not so much been affected by the rise in energy
impacted house prices, particularly for new homes,
costs, as they already had no access to electricity or
but also on the housing market as a whole. In Belgium,
fossil gas, but have been affected by the resulting
France, Romania, Sweden, and the Netherlands, the
rise in food prices. Some governments have expressly
construction sector has been hit by inflation, resulting
asked their populations to reduce their consumption
in reduced planning permission and new builds. This
or to “make an effort” in this direction. In Serbia, a
has had several effects, particularly on the construction
non-EU country, households have not been affected
industry, which employs many workers, but also on
so much.
would-be homeowners, who have had to turn to the
private rental sector as lower supply increased prices.
To the question of how the energy crisis has affected
In the Czech Republic, the dominant discourse is
the security of tenure of households (e.g., the risk of
now encouraging households to rent, which would
eviction), most of the groups that took part in the
allow them to live more flexibly, whereas, in reality,
survey replied that insecure households had been
the generalized rise in prices is putting a limit on
faced with the choice of paying their bills or their
access to property for the middle classes (that adds
rent/mortgage debts. This situation has increased
to the limits described in chapter one of this study).
arrears and, therefore, the risk of eviction in most
More expensive renovations have pushed up rents
countries, whether they are legal or “silent”, i.e.,
in Vienna. In France, EAC members are seeing an

increase in people turning to renting rather than households, who generally consume more. Apart
buying a home. Wages have not risen sufficiently to from subsidies, other measures such as moratoriums
compensate for the increase in prices, and this has on evictions, bans on electricity cuts, and payment
benefited the private rental sector, as well as the deferrals were temporary and merely shifted the
concentration of ownership in the hands of capital problem. The debts created during the crisis of rising
owners. In Romania, new buildings intended for sale energy prices and the cost of living were maintained.
have given way to those intended for rent. The The aim of European governments was to soften the
increase in the price of materials has, therefore, social impact of rising prices. The long-term effects
contributed to the rise in house prices, which in turn will not benefit households and will in no way enable
has reinforced the cost-of-living crisis. It has also precarious households to escape their situation of
pushed the buy-to-let trend further. poverty. Households living in self-built neighborhoods
in Lisbon, or those whose electricity bills are not in
their name but in their landlord’s name, have not
“Wages have not risen even been able to benefit from the aid provided by
the government.
sufficiently to
compensate for the
It is important to note the situation of Serbia, which,
as revealed by the anti-eviction group The Roof, has
increase in prices, and not experienced a crisis of rising energy prices like
other EU countries. Serbia continues to obtain its
this has benefited the supplies from Russia. Nevertheless, food prices have
risen sharply, and this is likely to impact households’
private rental sector [...]” ability to pay housing costs.
In response to questions five and six concerning the

The fourth question concerned government measures means of action in the face of the cost-of-living crisis
to counter the effects described in the previous three and proposals for the future, the member groups
questions. It is interesting to note that there is a revealed a lack of consideration on the part of
general tendency for European governments to governments in the face of the numerous campaigns
support private companies (and public companies and actions carried out across Europe with varying
in the case of Vienna) rather than limiting profits or degrees of success. In most contexts, self-organized
imposing (sufficient) price caps. In France, prices support groups have had to ensure that the most
have risen sharply despite the tariff shield introduced vulnerable survive this crisis. This shows that the
by the government, which has limited the increase public authorities have done nothing consequent
insufficiently. Contrary to what one might think, in and that part of the population is not enjoying its
Romania, the definition of a maximum price has made fundamental rights. That is why the EAC groups
it possible to release subsidies and liberalize prices. stressed the importance of highlighting the systemic
Instead of effective price regulation, households have causes to tackle the widespread growing
benefited from public subsidies to continue paying precariousness of the European population. To do
their bills or from payment deferment schemes, this, it is important to run campaigns and actions, to
particularly for those with mortgages. In several cases, mobilize and to address the real culprits of this crisis,
the groups criticized the inadequacy of these who are the architects of the liberalization of the
household assistance schemes. In the French case, fossil gas and energy markets, as well as the
the aid was more advantageous for residents of the shareholders who are profiting from it.
private rental sector than for those in the public
sector. Companies were able to take advantage of B. ENERGY AND FOSSIL PRICE CRISIS,
rising prices, and banks were able to avoid defaulting. INFLATION, AND INCREASE IN INTEREST
The causes of inflation were not attacked; on the RATES
contrary, the measures cited by the survey participants The cost-of-living crisis induced by inflation following
were designed to help households pay rather than the soaring rise in energy and gas prices is adding
to reduce prices and corporate profits or even to to the housing crisis and exacerbating it. These three
take control of certain essential sectors of the crises have common origins, stemming from policies
economy, such as the energy sector. While in most of privatization and market liberalization. The systemic
of the countries cited in the survey, it is the most causes have not been tackled by the states or by the
vulnerable households that have benefited from the EU; on the contrary, the crises are presented each
subsidies, in Sweden, public aid has been granted time as opportunities for the richest to accumulate
based on consumption, which has benefited wealthier wealth. Shareholder profits have increased

considerably, as several studies have shown, and
nothing has been done to limit them. No measures
have been taken to ensure that the rise in prices does
“The real winners have
not happen again: no price limits, no taxes on profits,
no socialization of sectors, not even obstacles to the
been company
privatization and liberalization of the energy and shareholders, while
fossil gas markets. Yet these are the main causes of
inflation, the concentration of wealth in the hands of workers have not seen
a few, and the impoverishment of more and more
people. their wages rise to the
In the first part of the research carried out by EAC,
same extent.”
Enikő Vincze looks back at the origins of the
infrastructures and the economy as a whole. The
liberalization and privatization of the energy and
privatization and liberalization of the gas and energy
fossil gas markets. She shows that the so-called
markets were imposed in the context of increasing
energy crisis is, in fact, a crisis of unpayable energy
globalization, and in Europe, they were based on a
prices. Gas supply and electricity production are not
series of political decisions aimed at ensuring the
the main problems. She points out that the energy
free movement of capital and increasing
and fossil gas markets have been gradually liberalized
competitiveness. In the energy sector, these decisions
since the 1990s. Before that, they were reserved for
have been brought about by five Energy Packages
the public domain and escaped the logic of profit
since the end of the 1990s. These packages were
and competition. As a result, governments regulated
the main causes of the rise in prices, even if the
prices, and the profits made did not go to shareholders
leaders wanted to blame mainly Russia and its
in the form of dividends, as is the case today, but to
invasion of Ukraine. While the European Commission
the governments themselves, which were able to
is proposing to develop the renewable energy
reinvest this money in production and distribution
industry as a way out of the crisis, some members of
Figure 9. Three months interbank interest rates, annual average, 2018 and 2023, Eurostat, Source https://ec.europa.eu/eurostat/statistics-explained/index.
php?title=Exchange_rates_and_interest_rates&oldid=627173#Interest_rates

the European Parliament are proposing to look at repayment and borrowing difficulties, and also by
price caps, curbs on speculation and profits, stops the fact that the general economic slowdown affected
to evictions and electricity cuts, and decoupling of labour rather than prices, whereas it was profits that
gas and electricity prices. should have been attacked if prices were to fall
without impacting households.
The rise in energy prices was made possible by
conditions imposed by the EU, and prices exploded We believe there is an urgent need to move away
with the Covid-19 crisis and the war in Ukraine, which from neoliberal policies to avoid crises that are caused
disrupted production and distribution chains. The by the desire to concentrate wealth in the hands of
result was inflation on a scale not seen for some 40 a ruling class, exploiting workers to pay their bills,
years. The real winners have been company buy their homes or buy their food, and even more,
shareholders, while workers have not seen their from a socioeconomic system that is based on
wages rise to the same extent. Many households capital’s profit maximization tendencies. Housing,
have been adversely affected, as we saw in the energy, and food, just like water and air, are
previous section. The soaring prices have not spared fundamental needs that cannot be distributed
rental and purchase prices, and the proportion of according to the profit margins of the elites. Capitalist
the budget devoted to housing-related expenses accumulation must come to an end, as must the
has become unaffordable in many cases. exploitation of resources and people, and fundamental
rights must be respected regardless of the cost to
Like the FED, the European Central Bank decided shareholders.
to raise interest rates in order to halt galloping
inflation. In 2022, the interest rates rose from 0% to
4%, a very substantial increase. In CEE countries, the
three-month or short-term interbank rates grew
higher than the EA average or compared to the
United Kingdom and the United States, as Figure 9
shows (Eurostat, 2024d).
The soaring interest rates had a negative impact on

production and did not stop inflation but merely
attenuated it. Banks had been charging relatively
low interest rates for ten years and had plenty of
liquidity, which enabled them to have a satisfactory
balance sheet and to make a profit. High interest
rates have put them in a difficult position, which has
had an effect on certain companies for whom the
possibility of borrowing was important. The rise in
interest rates, therefore, had an impact on productivity.
Prices were not reduced because the main causes
of inflation were excess profits rather than production
problems. Households were doubly affected: by

MARKETS
SECTION I.
POLICIES
SECTION II.
//Enikö Vincze
03
THE ROLE OF EU POLICIES IN
HOUSING FINANCIALIZATION
The deepening of the housing crisis in the European protection of the most vulnerable categories, leading
Union (EU) and globally is not only due to the cyclical to the residualization of social housing. Residualization
crises of capitalism produced by capital seeking new refers to the processes that have resulted in the
sources of profitable investments and accumulation radical decline of public and social housing quantity
or to the penetration of the financial market to the in the total housing stock and the trend of reducing
housing market. It also happens because of the its effective accessibility to the poorest social groups.
economic and social policies elaborated and In what follows, in this chapter of our study, we offer
implemented by states and trans-statal actors. In this details about the most significant EU economic
chapter, we reveal the accountability of the EU, which, policies that impacted the trends mentioned above
on the one hand, through its compulsory neoliberal in the housing sector and, eventually, the
capitalist economic policies and, on the other hand, financialization of housing.
through weak social policies, very limited in their
contents and impact on housing matters, facilitate 1. THE FREE MOVEMENT OF CAPITAL
and de-risk investment opportunities in the AND FISCAL POLICIES
(financialized) residential real estate market.
Based on the principle of free movement of capital
The European Union is an economic union that aims set by the EU’s foundational document, the Maastricht
to promote itself as a social market where the free Treaty (the Treaty of the European Union), the Council
movement of people and capital is equally ensured. Directive 88/361/EEC of 24 June 1988 stated: cross-
In fact, even though both social and economic border capital movements include foreign direct
policies are under the sovereignty of Member States investments, real estate investments or purchases,
(MSs), in the field of social policies and human rights securities investments (e.g., in shares, bonds, bills,
instruments, there is no such coordination mechanism unit trusts), granting of loans and credit, other
within the EU similar to how economic policies are operations with financial institutions, including
enforced in MSs by its economic governance. While personal capital operations such as dowries, legacies,
the rules and mechanisms of the economic union or endowments. The consolidated Treaty on the
coordinate MSs’ economies in a way that ensures Functioning of the EU and the Treaty on the European
their implementation in each country, social policy Union defined the basic rules for the European Single
measures are formulated only as non-binding Market (ESM) and the Economic and Monetary Union
recommendations to the MSs. Even more, existing (EMU), which were conceived to coordinate the
monetary and fiscal policies impede increasing public economic and fiscal policy-making between Member
expenditures for public and social housing both in States with an indirect impact on the housing sector.
times of austerity and economic growth.
Furthermore, the Stability and Growth Pact was
On the one hand, the significant economic policies elaborated in 1997 as a central rule of the EU’s
of the EU indirectly impact housing production, economic governance when the MSs agreed to
distribution, and consumption in the MSs. This is so strengthen the monitoring and coordination of
because they (also) support the free and unregulated national fiscal and monetary policies to enforce the
movement of capital invested in (residential) real public deficit and debt limits established at 3% and
estate and financial instruments interfering with the 60% of GDP, respectively. Informed by neoliberal
real estate (housing) market. On the other hand, the governance policies, this Pact held back the MSs
human and social rights instruments adopted by EU from social spending, including the investment of
institutions also indirectly impact the national housing public money into public housing. It had a devastating
systems if states have the political will to translate effect on the public sector and the people of the
them into national policies. However, the states are Member States, where severe austerity measures
being discouraged from investment in public housing, were enforced to be implemented as a supposed
and the social policy instruments at best sustain the solution to the 2007/2008 crisis. As a result, this crisis

ended with thousands of homes foreclosed, while unevenness in these matters across the European
banks were rescued with public money. In the context Union. Eurostat - Euroindicators publication (2024)
of the COVID-19 pandemic, in March 2020, the EC stresses that, compared with the third quarter of
activated the general escape clause to allow the 2022, eight Member States registered an increase
states to offer state aid to companies but, in their debt-to-GDP ratio at the end of the third
unfortunately, did not make the governments respond quarter of 2023, and nineteen Member States had
to peoples’ housing needs. During the 2020 global a decrease. Increases in the ratio were recorded in
recession, government debt rose to multi-decade Belgium (+2.5 pp), Estonia (+2.3 pp), Finland (+2.0
highs. pp), Latvia (+1.3 pp), Slovakia, Romania, and
Luxembourg (all three +1.0 pp) as well as Lithuania
The norm to save the capital by the state continued (+0.4 pp). The largest decreases were observed in
to be fixed under the energy crisis exploded in 2022 Greece (-12.0 pp), Portugal (-10.9 pp), Cyprus (-10.3
as a result of the long-term policy of privatization pp), Croatia (-5.5 pp), Ireland (-4.9 pp), Spain (-4.2
and liberalization of the energy sector in the EU MSs, pp), Sweden (-4.0 pp), Austria (-3.1 pp) and Slovenia
and aggravated by the decision in the context of the (-3.0 pp). Countries are advised by the European
war in Ukraine, to move away the EU economy from Commission (EC), International Monetary Fund (IMF),
the Russian gas. Accordingly, the governments and World Bank (WB) to consider that substantial
subsidized the increased gas and electricity costs fiscal consolidation is necessary; nevertheless, these
and, implicitly, the enormous profits made by the organizations seem to be more cautious about
energy companies, which added to the public deficits austerity measures than they were a decade ago,
and debts of the MSs. Therefore, in March 2023, the fearing a deepening economic recession.
Council adopted conclusions on the European
Commission’s reformed economic governance 2. CAPITAL MARKETS AND BANKING
framework, which re-enforced the ceilings of debts UNIONS
and deficit from GDP according to the original Pact
but left the MSs with greater national ownership for Another pillar of the EU economic policies, the
finding solutions to reduce them. This situation is Capital Markets Union (CMU), was launched in 2015
very explosive in the current period of economic as the European Commission (EC) planned to build
recession when compulsory spending on militarization a genuine single market for capital in the EU by 2019
in the Member States has continuously increased and unlock funding for Europe’s growth. Under the
public spending for the benefit of the military- CMU action plan, the EC has started working with
industrial complex while limiting even more public EU MSs to eliminate the remaining national barriers
investments into public services, including public to the free movement of capital. The 2020 Action
housing. Plan adopted by the EC on 24th of September
defined the actions under three objectives: support
The evolution of government debts, which usually a green, digital, inclusive, and resilient economic
entail fiscal constraints, in the past four years can be recovery by making financing more accessible to
very confusing at first sight. Data shows that they European companies; make the EU an even safer
rose to multi-decade highs during the 2020 global place for individuals to save and invest long-term;
recession, marking the largest jump in five decades, and integrate national capital markets into a genuine
but, on average, afterward, started to decline. Their single market. This was a further call towards EU and
decrease between 2022-2023 reflected the impact MS institutions to de-risk capital investments and, in
of growth compared to the low levels of 2020 and particular, to open up even more possibilities for the
the soaring inflation of the past two years. Analysts financial markets and actors trading financial assets,
warn that this relative decline is not a motive for including real estate and housing as an asset class.
celebration because, overall, public debt remains Recently, the transition from private to institutional
higher than its 2019 level in about three-quarters of ownership was eased by the Capital Market Union’s
countries, and in 2023, slowing growth and tightening measures (for example, the Simple, Transparent, and
financial conditions raise the risk of debt distress as Standardized Securitization and the Securitization of
debt became more costly (Kose et al., 2023). Non-Performing Exposures). The European Public
Moreover, international organizations emphasize that Real Estate Association data shows that in 2021,
public debt as a fraction of gross domestic product non-listed (private equity) funds owned 30% of the
has increased significantly in recent decades, and it 2.7 trillion Euro real estate assets in the EU28 (an
is expected to grow both in advanced and middle- increase of 10% compared to 2020), while insurance
income economies, reaching 120% and 80% of companies, pension funds, and sovereign wealth
output, respectively, by 2028 (Adrian et al., 2024). funds directly owned another 16% (Gabor & Kohl,
In addition, a look at country-level data shows 2022).

The European Banking Union (EBU) is another intervention in Dutch housing policy based on its
dimension of the ESM. Its Regulations from 2014 responsibility for the common market (Gruis &
assured the European Central Bank (ECB) a supervisory Priemus, 2008).
capacity over the national competent authorities of
all the MS (not only the euro countries) and defined In March 2020, the EC adopted the State Aid
uniform rules for the resolution of credit institutions Temporary Framework to enable MSs to use the
and investment firms in bad health, and a single flexibility foreseen under these rules to support the
resolution fund to help finance the resolution of economy during the coronavirus outbreak. This was
banks. The powers of the ECB include control over extended till June 2023, and a new amendment was
defining monetary policies or interest rate trends adopted in July 2023 to support the economy. It
and determining when to implement Quantitative clarified the conditions under which MS may grant
Easing or Quantitative Tightening measures. The aid to cover the recent increase in gas and electricity
latter impacts how much money is invested into costs for companies. It provided additional aid
(residential) real estate development and used in measures in line with the REPowerEU Plan, such as
speculative investment practices and predatory accelerating the rollout of renewable energy and
lending. As a result, in the past few years, for example, facilitating decarbonizing industries. Unfortunately,
the hedge funds, using quantitative easing measures the EC did not make any provisions for the production
of the European Central Bank, pursued risky of public housing by public companies as a way to
investment strategies to produce higher rates of support the economy and the workers.
return. Corporate debts reached record highs
globally. Meanwhile, in July 2018, the EC published 4. URBAN AND HOUSING PROGRAMS
a communication that recalled the fundamental rules WITH LIMITED ACTIONS
under EU law for protecting investments within the
European Single Market. It is expected that the Under the conditions framed by the EU policies
growing inflation and the monetary policy discussed above, the European Parliament (EP)
implemented by the ECB, that is, the continuous rise launched three important housing-related Resolutions
of interest rates, will impact housing construction (on social housing in 2013, on homelessness in 2020,
and the mortgage market. Predictably, institutional and on affordable housing in 2021). These, however,
investors are looking all over the MS for alternatives did not have real effects in the actual policies of the
to the build-to-sell model. At the same time, the EU and its MSs (see details about these in Vincze &
labor classes do not have better access to adequate Betavatzi, 2023/2024, section 2.3).
homes, and indebted people with lower incomes
risk losing their homes due to the intersected housing Moreover, even if the EC recognized that the urban
and energy prices crisis. dimension of the Cohesion Policy needs to be
strengthened while addressing sustainable urban
development, it did not mention housing among the
3. COMPETITION AND STATE AID
challenges European cities currently face. However,
RULES the Pact of Amsterdam in 2016 acknowledged that
The EU’s Competition Policy and State Aid Rule housing was one of the urban priorities in Europe,
promotes maintaining competition within the ESM but that remained an informal document elaborated
by regulating anti-competitive conduct by companies by the Informal Meeting of EU Ministers Responsible
to ensure they do not create cartels and monopolies for Urban Matters. This Pact affirmed that the Urban
and control the direct and indirect aid given by MS Agenda for the EU would be regarded only as an
to companies. The European Commission monitors informal contribution to the design of the future and
and, where necessary, blocks anti-competitive revision of existing EU regulations, and administrative
agreements, abuses by companies of dominant burdens for urban authorities should be minimized.
market positions, mergers and acquisitions, and
government support. Besides, through the Affordable Housing Initiative
of the Renovation Wave launched in 2021, the EC
Regarding these policies, an example from the preferred to implement programs that, at best, are
Netherlands shows how such measures can affect greening but not solving the housing affordability
national housing policies. In 2005, the EC demanded crisis and are providing new investment opportunities
that the Dutch state change its allocation procedure for the real estate sector and new instruments for
of social housing (i.e., making it less universalist/ the states to support them. Until now, the initiative
generalist). Although the general message of the EU consisted of three open calls to ensure that social
continued to be that housing is the exclusive domain and affordable housing facilities benefited from the
of national governments, the EC legitimized its Renovation Wave. According to the EC, this Affordable

Housing Initiative is in line with the Housing Besides its decision-making institutions, whose
Partnership of the Urban Agenda, the EP’s resolution activities in the domain of housing we presented
on maximizing the energy efficiency of EU buildings, above, a few large non-governmental organizations
the EP’s resolution on decent and affordable housing are focusing on housing matters in the EU that the
for all, the Energy Efficiency Directive, the Energy Union supports. The two most important ones are
Performance of Buildings Directive, as well as the the European Federation of National Organizations
Housing for All citizens initiative, and the Committee (FEANTSA), which made several calls to put the fight
of Regions’ and the European Economic and Social against homelessness on the agenda of the European
Committee’s opinions on housing. Nevertheless, due Semester and different EU Funds; and Housing
to the lack of real impact of such opinions or citizens’ Europe (the European Federation of Public,
initiatives or the quoted EP Resolutions or the EU Cooperative and Social Housing) that, through its
Urban Agenda, and despite these rhetorical members, manages around 25 million homes and
statements of the EC enjoying large executive power, offer social and neighborhood services for their
this initiative is unable to increase the public and tenants. There are no civic or non-profit organizations
social housing stock. It does not do anything to at and networks supported by the EU that focus on the
least limit the effects of housing financialization (see de-financialization and socialization of the housing
more details about these EC initiatives in Vincze & sector, public investments into public housing, and
Betavatzi, 2023/2024, section 2.2). housing market regulation.

04
EXISTING PROPOSALS TO SOLVE
THE HOUSING CRISIS
The Housing Europe Manifesto (Housing Europe, already launched programs in this domain progress
2024), launched on 26 January 2024, was among the in time (for example in Ireland; see in EIB, 2019,
most recent EU-level proposals for solutions to 2021).
Europe’s decades-long housing affordability and
homelessness crisis. The Manifesto was backed up The limitations of the Housing Europe 2024 Manifesto
by current Members of the European Parliament regarding provisions for public housing are not new;
(MEPs) from five political groups. The supporting they are inherent in Housing Europe’s former
MEPs stressed that access to housing should be at initiatives. In 2015, Housing Europe took part in
the center of political programs ahead of the establishing the Housing Partnership of the EU Urban
European elections. Since the far right capitalized Agenda (also mentioned in the earlier section of our
on linking housing shortage and unaffordability to study) and its 2018 Action Plan. The latter document
immigrants and gained popular support across defined “affordable housing” as its target, designated
countries, the mainstream parties cannot avoid as a large spectrum of types of homes consisting of
putting housing on their electoral agendas. The social housing, affordable rental housing (including
question is, obviously, how far are they willing to go private rental, charity homes, regulated market
in recognizing the systemic causes of the housing housing, publicly funded private housing, and
crisis and that their former political decisions cooperative housing), and affordable homeownership
prevented the states from investing in public housing, (including privatized social/public housing, subsidized
which they should counteract as soon as possible construction or renovation, community land trusts,
with urgency. tax breaks, and shared equity). Paradoxically, this
broad concept about what kind of homes should be
1. THE 2024 HOUSING EUROPE developed has shallow ambitions, so it cannot cope
MANIFESTO AND ITS LIMITATIONS with the effects of the decades-long housing crisis
rooted in privatization and financialization or lack of
Housing Europe, the author of the 2024 Manifesto, public housing.
is a European Federation acting as a network of social,
public, and cooperative housing providers in 31 In 2023, Housing Europe coordinated the European
countries since 1988. Together, they manage around Affordable Housing Consortium, co-funded by the
25 million homes, about 11% of the existing dwellings European Union’s Single Market Program. As it is
in Europe. Besides their commitment to affordable stated on its website, “the goal of the project was
housing, they are interested in EU initiatives to support public, social, and cooperative housing
supporting the private providers of this housing providers, public authorities, and SMEs to deliver
segment. social and affordable housing district renovations,
which include innovative features, such as the use of
The cause of “affordable housing“ was also embraced smart and circular technologies and new approaches
by the European Investment Bank (EIB), which created created and managed jointly with the local
advanced financial tools for social and affordable communities.” As we already noted about this
housing loans. The EIB policy should be analyzed initiative, it did not support new investments into
more closely in another study, investigating how far, public housing.
till now, it has offered loans or mostly created new
debt products or debt guarantees and contributed The 2024 Manifesto proposes three steps to be taken
to housing financialization via its investments in equity by the EU if it wants to play a pivotal role in ensuring
and funds (see European Investment Bank website, affordable and decent housing for all: embracing a
What we offer); how far it mostly supported private new housing paradigm, baking a movement for fair
associations or companies or public-private energy transition, and addressing the root causes of
partnerships investing in social and affordable homelessness. It calls for the support of public,
housing (e.g., EIB, 2016; EIB, 2019); and how did its cooperative, social, and community-led housing as

the backbone of national housing systems; for European financing from the European Investment
ensuring that public debt and deficit rules adequately Banks and the European Commission.
account for the positive long-term social return on
investment from the sector; adapting State Aid rules This Declaration combines a widespread diagnosis
so they do not prevent Member States from regarding the lack of affordable housing among lower
addressing the housing crisis; including housing and middle-income households, people at risk of
exclusion indicators in the EU Semester, the biannual homelessness, and people with disabilities; with a
economic, fiscal, employment and social call for a pretty narrow action plan named ambitiously
recommendations to Member States; preventing as the European New Deal for Affordable and Social
short-term rental platforms’ impact on availability Housing. The latter refers to four sets of actions: the
and affordability of housing through European organization of an annual EU summit on social and
legislation; addressing the impact of higher interest affordable housing, where Member States can
rates and construction costs, which are slowing the exchange best practices in this field in compliance
delivery of new social housing; sharing effective with the principle of subsidiarity; the development
models of inclusive housing systems within and of an EU Platform to support national, regional, and
beyond Europe as the new way forward. In regards local partnerships between housing providers, social
to the second step, the Housing Europe Manifesto services and authorities to end housing exclusion;
defines five suggestions for connecting the norm of taking better account on the side of the European
decarbonization to the need to ensure a fair energy Commission of the repercussions of EU policies on
transition in the housing sector. Concerning the access to housing in its impact assessments; renewing
urgent need to address housing exclusion, the the lending by the European Investment Bank to
Manifesto calls for closer cooperation between social social and affordable housing providers.
service providers, local authorities, and social and
affordable housing actors to secure access to decent, One month before the above initiative, on 7 February
affordable housing as the best way to prevent 2024, the Belgian Presidency of the Council of EU
homelessness. organized a high-level meeting crowned by the
signing of a joint declaration by 40 mayors. The
Such a general appeal to embrace a new housing Brussels Declaration of European Mayors (2024)
paradigm in the context of the 2024 European addresses the European institutions with concrete
Parliament elections is more than welcomed. priorities and recommendations for a strong and
However, unfortunately, as it is now, on the one hand, ambitious EU urban policy during their next European
it does not go beyond old recommendations, and, mandate following the elections in June. It presents
on the other hand, it does not target concrete four fundamental priorities for cities, among them
solutions besides the creation of a Task Force led by the promotion of the right to affordable, quality, and
a European Commission Vice-President, a sustainable housing, and six recommendations,
transformative fund used for socially responsible among which housing is not stressed as a component
renovations, and the introduction of housing exclusion of the proposed directions for policies aimed at
as a core section of impact assessments for EU creating more sustainable cities.
policies.
3. WHAT IS MISSING FROM THE
2. THE 2024 EUROPEAN NEW DEAL ABOVE INITIATIVES?
FOR AFFORDABLE AND SOCIAL The biggest value of the above declarations and
HOUSING New Deal is that they were conceived before and in
As a continuation of launching the above Manifesto, the context of the 2024 EP elections, which suggests
on 5 March 2024, the Belgian Presidency of the that policymakers cannot avoid anymore responding
Council of the EU, with the support of Housing to the housing problems to whose creation they fully
Europe, organized a European conference in Liège, contributed in their prior mandates. Otherwise, they
with the presence of all EU housing ministers. The do not really go beyond the EU urban and housing
participants endorsed the Liège Declaration for initiatives discussed in the last paragraph of Chapter
Housing (2024) that called for a European New Deal Three and, in more detail, in a recent study about
for affordable and social housing with a dual objective: the impact of EU policies on housing and urban
proposing solutions to improve access to affordable development (Vincze & Betavatzi, 2023/2024, section
and decent housing for all within the European Union 7.2). Still, there is too much political talk about
through an EU housing platform; promoting the exchanging best practices, creating new task forces,
access of social housing organizations to long-term making calls to EU institutions that are not echoed
at the EC, and forging rhetorical promises about

combining greening with social fairness within the macroprudential mandate for European central banks
appealing discourse of “new deals.” to react to house price inflation through the tighter
but socially just regulation of mortgage lending.
Even more, regrettably, these new political
commitments do not pay attention to the proposals (c) Increase public investment by including, in the
regarding the reforms needed to reverse housing European Semester and the National Reform
financialization. This is in spite of the fact that, in the Programs. Recognize social and affordable housing
last few years, several recommendations were clearly for all and not only for disadvantaged citizens.
defined in this sense within studies commissioned Enshrine the housing policy in a larger European
for The Left or the Greens/EFA political groups or social policy by developing a “housing affordability
by the Party of European Socialist Group, as discussed check” in the Member States. Facilitate access to
in Vincze & Betavatzi (2023/2024, section 7.1); finance by including social and affordable housing
respectively elaborated by (a) Tulumello & Dagkouli- in the new EU social taxonomy. Set up an EU
Kyriakoglou, 2020, (b) Gabor & Kohl, 2022; and (c) framework to regulate the impact of digital platforms
New EU Housing Strategy, 2022. Here, we mention on housing markets. Establish a common framework
the following recommendations from these texts. for local rental price control and stabilization systems
with European cities and regions. The EU should
A. Financial markets need to be regulated more

tightly at the European level, with the double
goal of reducing the incentive for households to
incentivize the MS and local and regional authorities
to put caps on rents. Tackle speculation and money
laundering in the housing market at the EU level
pursue homeownership via mortgage debt and through an EU-wide real estate transparency registry,
creating barriers for international speculation in real including the beneficial owner of the respective
estate markets. Social housing, currently framed as property. Regulate the housing market to avoid
a Service of General Economic Interest, should be predatory trends of large real estate companies.
considered instead as pertaining to the Social Services
of General Interest category and consequently be The June 2024 EP elections should open the door
exempted from competition rules. Spending public for restructuring the EU as a Socio-Economic Union
money on housing should be exempted from national to define effective solutions to the decades-long
budgetary limits. housing crisis. This should be based on the recognition
that as it is today, the EU economic governance
B. Create a Sustainable Institutional Housing

framework using a social-washing-proof
Taxonomy to anchor mandatory disclosure and
creates the conditions for deepening the housing
affordability crisis, while the soft social policies and
human and social rights instruments do not ensure
regulation of institutional landlords. Establish a their safeguarding and implementation in a way that
European Housing Fund that works as a countercyclical effectively guarantees universal access to adequate
force to ring-fence the collapse of housing asset housing (Vincze & Betavatzi, 2023/2024).
bubbles that typically result in the transfer of housing
units from small private or public ownership into Furthermore, it is time that decision-makers
institutional portfolios. Raise financing for public acknowledge the embeddedness of the housing
investment in social housing. Put a Housing Red Flag question in the capitalist political economy. The last
Rule on new European-level regulatory initiatives, two chapters of our study aim to offer several
which requires the constellation of European reference points that could assist them in this
regulators to ensure that new regulatory initiatives endeavor.
do not inadvertently de-risk housing asset classes
for institutional landlords. Define an extended

MARKETS
SECTION I.
POLICIES
SECTION II.
CAPITALISM
SECTION III.
AND BEYOND
//Enikö Vincze
05
FRAMING THE HOUSING
QUESTION IN CAPITALISM
FROM A MARXIST PERSPECTIVE
In the context of 19th-century capitalism, Engels market forces. In our study, we concentrate on the
(1872) defined the housing question as a matter of European Union, as political answers to the housing
housing shortage and a symptom of the industrial question from the European left are expected to be
revolution. He also dealt with the bourgeois and elaborated and implemented in this context. However,
petty-bourgeois utopia of homeownership, which we should not forget that radical solutions should
was promoted as a solution to this question. Likewise, happen worldwide since the global flow of
he described the inadequate conditions of the “bad, interconnected real estate and financial capital
overcrowded and unhealthy dwellings” (p. 14) that penetrates every corner of the contemporary globe
the labor force was forced to live in when moving to and should be regulated transnationally and
cities and working in new industries. However, Engels trans-continentally.
sustained that the essence of the issue was not that
the working class made a living in such conditions “Even when strongly
but that the problem was created by the structures
of exploitation and oppression of workers by the dominated by market
ruling class. These structures must be abolished in fundamentalism [...] it is the
order to solve the housing question.
state that decides [...] if it
We appeal to the Engelsian view to understand the supports the production,
housing question as continuously (re)created by the
capitalist political economy and its variegated exchange, and distribution of
accumulation regimes. The housing question might housing to respond to
have had different manifestations during the history
of global capitalism; nevertheless, the inability of the people’s housing needs”
system to provide as many adequate and financially
affordable homes as needed by the labor force who Despite denying its role in the housing matters of
ensured its socio-economic (re)production always the Member States, the European Union institutions
remained at this question’s core. Understood this run in parallel some programs that address housing
way, the housing question as a crisis intensified in as a social policy and conduct economic policies that
parallel with housing becoming predominantly a site affect the housing market (Vincze & Betavatzi,
of capital accumulation and exploitation. Our study 2023/2024, and Chapter Four). As a social and
addresses the housing question in the context of economic issue, housing stays at the core of political
financialized capitalism in the 21st century. We are economy regimes. Furthermore, both social and
more than five decades after the failure of state economic policies are informed by politics, elaborated
capitalism, which was informed by Keynesian welfare and implemented by legislative and executive state
policies to provide public housing for labor. Three institutions according to their political ideologies.
decades following the enforced collapse of state Even when strongly dominated by market
socialism are also gone. However, we can recall that, fundamentalism, in capitalism, it is the state that
in the context of a centrally planned economy, it was decides (under the pressure of capital) if it supports
possible to put into function a non-profit financial the production, exchange, and distribution of housing
system to construct millions of public dwellings for to respond to people’s housing needs (creating
the workers. housing as a social and use value), or if it sustains
the accumulation of capital in the hands of institutional
Today, we can affirm that, instead of increasing the investors, developers, and landlords. In capitalism,
affordability of adequate housing, globalized the latter are the creators and managers of housing,
capitalism turned this economic sector into a favored aiming to extract as much return as possible from its
site of capital investment while reducing the welfare exchange or market value. Therefore, the actions to
measures for the social protection of tenants against fundamentally challenge the systemic roots of the

housing question (re)produced by capitalism have which consist of the over-accumulation of capital,
to target both the state and the capital. Because the profit gained from other economic sectors might
both actors are responsible for adequate housing be invested into the housing sector. Additionally, as
becoming unaffordable for the labor force while part of the built environment, housing acts as the
transforming residential real estate into a domain of secondary circuit of capital. David Harvey (1982) calls
capital accumulation endorsed by state politics. this phenomenon “capital switching”, which functions
under the logic of directing money capital according
to its highest and best use. Others (Aalbers &
In this chapter of our study, to enable Cristophers, 2014) consider that this process is about
defining the directions of actions that should parking the surplus into housing (secondary circuit)
be taken to solve the housing question until the primary circuit recovers from its over-
generated by capitalism (see Chapter Six), accumulation crisis.
we frame it by discussing (1) the role of
housing in political economy, (2) the Furthermore, on the market, where the surplus value
manifestations of five contradictions of of housing is realized when it is traded as a commodity,
capitalism in the domain of housing, (3) the difference between – on the one hand – the social
housing classes and inequalities, and (4) by value, the actual production costs of a dwelling or
offering a synthetic view on housing the cost for which it was first bought, and – on the
financialization in financialized capitalism (its other hand – its exchange or market value becomes
details being described in Chapter One). the profit of the supplier. The “supplier” in this trading
relationship is not simply a producer but a speculator
who buys a home to sell further for a higher price or
1. THE ROLE OF HOUSING IN rent it out to gain monthly income. At the same time,
CAPITALIST POLITICAL ECONOMY in the long term, he/she benefits from the increasing
market value of the rented dwelling.
Housing plays a central role in any political economy
regime; therefore, its financialization is endemic to Besides, it might happen that when sources for
financialized capitalism. Thus, the housing crisis (re) buying other products and services from the market
produced by capitalism that the European left has dry out, a house furnishes means of funding as it
to address has to be approached as a phenomenon could be turned into cash by its owner. Therefore, a
created by the systemic processes of capitalism and dwelling can serve as the owner’s savings vehicle,
solved by looking for alternatives to capitalism. Let safe deposit box, or cash machine in times of financial
us recall why housing stays at the core of the capitalist emergency. Additionally, the rent paid regularly by
system and why it should be addressed from a the private renter transfers the yield into the rentiers’
political economy perspective. Below, we will briefly pockets in a reliable manner, assuring the possibility
discuss how housing acts as a domain through which of a rent increase in the future without significant
the basic features of capitalism function, among them improvements to the rented dwelling. This is because
class exploitation and capital accumulation. the exchange value of a home or the rent paid for it
on the market depends on many other factors, not
In capitalism, the material production of housing via just the physical dwelling itself. Among others, it is
construction is an economic activity where the owner contingent on the value of the land (provided by its
of the means of production exploits the labor force. geographical location, infrastructural equipment,
In this domain, labor is not paid for the whole value and proximities); thus, the commodification of land
it produces; the capitalist class appropriates the and its increased price fuels the commodification
surplus value over its salary. Housing as a product and price increase of dwellings placed on it.
resulting from the workers’ labor is accessible by Additionally, the property on a home gained to be
laborers as a commodity on the market, where its exploited for profit might be transferred from one
exchange value is realized as profit for the benefit housing market to the other, facilitated by larger
of the owner of the means of production. Once socio-economic transformations. Such as the increase
acquired, housing provides a space for the in demand for rental housing or student housing and
reproduction of the (exploited or expropriated) labor other housing types that can be used as niche markets
force and supports capital accumulation in this for capital investment and accumulation.
indirect sense, too.
In neoliberal capitalism, since the states withdrew
Meanwhile, housing construction contributes to the from the production of public housing – making more
advancement of the economy in direct relation to place in this way for the private production of private
connected industries. Moreover, during times of crisis, housing – real estate developers acquire a monopoly

over housing production, exchange, and prices. The payments often secured by public debts) to a
anti-state ideology endorsed that the state is unable personal-debt-based paradigm. Besides, in
to construct dwellings and has no financial resources financialized capitalism, dwellings might be used as
and administrative capacity, or even that public collateral for other loans. Additionally, dividends paid
housing production is unsustainable due to its high after the shares of its owners due to the yields
production and maintenance costs and low rents. In extracted from rented residential units or the gains
these circumstances, the private developers indulge from the stock market are money made from money
themselves as the one and only actors who have without producing a new commodity.
money and knowledge for new housing production
and, as such, demand support from the central state In addition to its role in a political economy regime,
(for example, business-friendly fiscal policies) or from the housing sector has its political economy. The
the local government (for example, flexible urbanistic latter consists of housing politics transformed into
regulations). policies regarding housing production, exchange,
and distribution and of market relations evolving
Under intensified globalization since the end of the through planning, financing, constructing, and
1970s, the transnational economic and political trading residential real estate.
players provided rules that enhanced the free
movement of capital across national borders (for 2. THE MANIFESTATION OF FIVE
example, through the Washington Consensus and CONTRADICTIONS OF CAPITALISM IN
the Maastricht Treaty of the European Union). Real
estate capital was also enabled to be invested
HOUSING
wherever it looked for increased returns. From the According to Harvey (2014), capitalism is shaped by
point of view of core capitalist countries, this move seventeen contradictions. Relying on his discussion
was about solving the over-accumulation crisis of on this topic, we will refer to five contradictions and
capital from these countries via its geographical move how they are manifested in housing. Main tensions
toward non-capitalist territories, a trend named result in this domain from expecting that the use
spatial fix (Harvey, 2001). value of housing should be delivered by a system
that relentlessly prioritizes its exchange value
When, as a general tendency, the role of financial (Cristophers, 2010). The role of housing in the
markets and actors was boosted in the whole capitalist political economy is also visible in how
economy, governments and transnational actors unevenness in housing wealth (that expresses the
created the possibility for financial instruments and unequal social relations arising from the circulation
institutions to function (such as banks, mortgages, of capital) endangers the social reproduction needed
mortgage securitization, investment funds, and real for the circulation of capital (Aalbers & Cristophers,
estate trusts). The latter tools are put into the service 2014).
of residential real estate development, thus
transforming housing into an asset class. Among the
financial institutions and instruments favoring housing
financialization, the credit-creating institutions and
1. In a market economy, the housing stock must be
sold and bought on the market at its exchange
value to be accessible as a use value. This creates a
mortgage debts have the potential to sustain the contradiction because, due to low salaries and
purchasing power of the labor force when their income inequalities, not everyone can afford to
income cannot cope with increasing prices on the purchase or rent an adequate home at the market
housing market. If capitalism had not invented this price; therefore, many people are denied access to
solution under conditions in which capital enjoyed a home’s use or social value. The housing inequality
privileges due to low salaries paid to the labor force, that this contradiction creates deepens and becomes
the decreased effective demand (for housing) that more evident over time, manifesting itself in space.
should have sustained (new housing) production The housing of diverse quality accessible to people
would have blocked the circulation of capital. In these with different incomes is placed in various
circumstances, the surplus value of housing as a neighborhoods in a city, which are uneven from the
product on the market could not have been realized. point of view of their infrastructural equipment and
To highlight the specifics of this method for saving connectedness to areas where services and goods
capital from the crisis itself created, scholars have are accessible.
used the terms privatized Keynesianism (Crouch,
2009) or house price Keynesianism (Watson, 2010).
These concepts signal the switch of capitalist growth
models from post-war Keynesianism (where the
2. The contradiction between money (the material
representation of value in the process of
commodity transactions) and the social value of labor
welfare states enabled consumers via their transfer (which is invisible in commodities) means that money

can itself become a commodity. Money capital can reproduction, such as a home, if neither the employers
be bought and sold in itself as a commodity. In nor the government provides laborers with housing
capitalism, money is valued as a form of social power and utilities at an affordable price compared to their
rather than a means to satisfy basic human necessities earnings. The reason is that the housing market has
like food, clothing, and shelter. Money becomes a evolved into a highly profitable sector, generating
possession, forming the foundation of speculative, significant income from various sources: private rent,
fictional capital; profit is made by selling money in market pricing, bank interest on mortgages and other
the form of loans that are invested in real estate; real estate loans, investment fund revenues, and
interest rates steadily climb; and finally, a systemic returns from the stock market. Moreover, in addition
crisis might be triggered when the debt-based to paying income taxes and other fees associated
economy collapses. State interventions to alleviate with a worker’s status, employees also make a
the financial crisis caused by financial institutions monetary contribution to the public budget through
benefit the latter. At the same time, their costs are property taxes. Under these conditions, income
socialized, widening the inequalities between classes inequalities are translated into housing unevenness,
and among the laborers with various socio-economic with many people suffering from housing insecurity
statuses, and most importantly, between those who and deprivation while others make huge profits from
profit from people’s housing needs and those who the financialized housing market.
need a home.
3. The contradiction between individual rights to

private property and collective state power that
5. The contradiction between production and
realization of products in the market is a tension
between production and social reproduction since
is supposed to work for all is another key tension in the latter requires workers to buy things from the
capitalism. The capitalist state promotes and protects market to meet their needs. The sale of goods on
private property and wealth accumulation through the market, or the realization of surplus value, is
its fiscal, monetary, industrial, and housing policies necessary within capitalism since the value created
while facilitating the free flow of capital across by labor alone is insufficient to guarantee a profit for
economic sectors and countries. The state also the owner of the means of production. Production
encourages the development of the real estate sector and market realization are two moments of capital
as a means of capital accumulation. Through the circulation or capital accumulation. The workers
principle of non-interference and non-regulation of exploited in the production process (receiving wages
private property, the state recognizes the rights of lower than the value they produce) buy the products
individuals and corporations to own and trade their they create (for example, housing) at a surplus price
dwellings privately. Leaving this contradiction that includes the profits of several owners of the
unresolved, or more precisely, resolved in a way that cycles of production and trading of goods (including
serves private interests at the expense of public homes). Capitalism drains profits from laborers’
benefits ensures the conditions for capital income at multiple production and social reproduction
accumulation while simultaneously giving rise to a phases, which are also related to housing.
wide range of inequalities, including income, housing,
and territorial disparities. 3. HOUSING CLASSES AND
INEQUALITIES IN CAPITALISM
4. Due to the fundamental conflict between labor
and capital, a company’s profit will suffer if it
pays workers higher salaries, while it will grow if it
The concept of housing classes is controversial, with
varying definitions. We understand it as a continuum
pays workers less. Nevertheless, if workers are paid of contradictory positions created at the intersection
less, they will have less money to consume and of one’s labor and housing market positions. There
reproduce the labor force needed to sustain are many possible combinations between different
production. The necessity to sell one’s labor to survive housing statuses (e.g., owners, private renters, social
is one aspect of labor’s exploitation in a capitalist renters, or informal dwellers) and labor classes (i.e.,
system, but labor is also exploited through its housing various people forced to sell their labor for a living,
needs. Capital accumulation in capitalism is achieved who may have different social statuses according to
through dispossession, both in the workplace (where their school education and income). Discussing this
the owner of the means of production appropriates issue displays the need to acknowledge that the
the surplus value created by the workers) and in the laborers are also tenants, and the tenants are also
housing sector (where developers, landlords, and laborers, so the laborers-as-tenants or the tenants-
banks extract surplus value from tenants’ incomes). as-laborers cumulate a series of (uneven) effects of
The workers are supposed to be solely responsible exploitation and dispossession.
for obtaining the resources required for their social

We pinpoint the following categories on the laborers’ 4. FINANCING HOUSING AND
side to identify concrete examples of this continuum HOUSING FINANCIALIZATION IN
at the intersection of people’s class and housing
market positions. Higher-earning young adults who
FINANCIAL CAPITALISM – A GENERAL
are qualified for mortgages but become indebted OVERVIEW
for life or struggle to afford private rental housing To produce and maintain housing, the actors involved
after relocating to cities in search of better work in these economic processes (the state, the physical
prospects. Young individuals with low incomes who persons, associations, and companies) always needed
work in urban centers but are not eligible for money to provide means of production, construction
mortgages or cannot pay for private rentals and materials, and labor force. Likewise, people needed
remain trapped in overcrowded dwellings shared money to purchase or rent a home from the market
with others. Small homeowners who rent out a room or non-profit institutions and organizations to satisfy
in their apartment or another flat to supplement their their housing needs.
income, extracting income from other people who,
in turn, cannot afford to own a home on their property. Nevertheless, the role of finance in housing changed
The retired elderly with modest means of subsistence a lot beyond the simple connections between finance
who own one property that they could rent or sell to and housing mentioned above. This happened as
supplement their limited incomes but cannot afford state capitalism, challenged by its crisis in the 1970s,
an alternative home in the same city. The most transformed into neoliberal capitalism, which, in turn,
vulnerable members of society who earn the minimum when shocked by the 2007/2008 financial crisis, gave
wage or less and have no friends or family nearby place to an accumulation regime characterized by
who might host them are pushed into informal the increasing role of financial actors in (residential)
settlements with substandard and unsafe housing. real estate development. Figure 1 reflects these
transformations regarding housing politics and capital
On the other side, the exploitative housing classes, investment in housing. Figure 2 highlights the actors
a subset of the capitalist class, include a wide range of real estate markets and financial markets and what
of socio-economic categories. Among them are the occurs at their crossroads.
business people who have diversified their holdings
and are now reinvesting earnings in the construction, Housing and real estate financialization (Aalbers,
trade, or management of dwellings. Most importantly, 2008, 2009; Rolnik, 2013) was preceded by the
this class may comprise the developers who own the excessive privatization of homes and banks and the
means of housing production (e.g., land, raw deregulation of the housing markets since the 1980s
materials, and construction tools) and use these in capitalist countries and from the 1990s in former
means as capital to exploit and extract profit, not state-socialist countries (Gabor, 2010, 2013; Vincze,
only from the sale of housing on the market but also 2017; Dal Maso, 2022; Vincze & Florea, 2023). Such
from the exploitation of the labor force engaged in economic processes were facilitated by politics and
construction and related work. Developers profit by policies of national and international decision-makers,
speculating the exchange value of homes that who, in this way, contributed to the outbreak of the
exceeds housing production costs. Besides housing crisis. Housing financialization evolved as
developers, the owners of investment funds and part of capitalism’s financialization (Gabor, 2012;
those who invest their money into these funds are Lapavitsas, 2013; Moreno, 2014; Kotz, 2015) and
also part of the housing exploitative class due to how attracted the attention of analysts around and after
they make money out of its circulation. This class the 2007/2008 financial crisis.
also includes bankers and the proprietors of other
financial institutions that provide loans for real estate The latter escalated from the overburdening of the
development, selling money from which they make credit system that, for years, attracted even unreliable
money. Lastly, the non-institutional rentiers are also debtors with cheap credit to make capitalism and its
part of the housing exploitative class; they are people private housing sector function. Mortgage schemes
who do not have to work/ sell their labor force to supported the demand for housing despite the
support themselves since they are making a living increase in prices and the reduction in the population’s
from renting out either real property or securities purchasing power. At the same time, private
(financial instruments that have monetary value and indebtedness was naturalized as an acceptable means
can be traded). to accomplish the idealized aim of homeownership.
The 2007/2008 economic crisis induced by the
financial crisis, fueled by the housing bubble, was
an opportunity for institutional investors to penetrate
the mortgage market and use securitized mortgages,

Inflation crisis, economic recession
The Crisis from 1970s Financial crisis from 2007-08
deepened with 2020
STATE CAPITALISTM // NEOLIBERAL CAPITALISM // POST-NEOLIBERAL OR LATE NEOLIBERAL CAPITALISM
Housing politics: public Housing politics: withdrawal of the state A new phase of financialization: investment funds and global
investment into pubic housing from the role of housing producer and institutional landlords purchase residential units in various
that sustain the reproduction of sustaining the private construction of countries (from the state, from banks, vacant housing
labor force, which creates the private housing. resulting from the eviction of nonperfroming debtors, from
surplus value appropriated by real estate developers)
capital. Selling the state-owned housing stock to
private persons (former tenants, renters, The increasing role of financial actors in all economic
Accumulation of capital companies, associations). sectors, including the housing sector
happens predominantly in the
first circuit of capital Liberalization of free movement of capital Strengthening of the finance-led housing accumulation
(productive economy, across the borders of nation-states (linked (purchase of housing portfolios by financial actors for
commodity, including housing to globalization facilitating the ensuring and enlarging their capital accumulation resources)
production). phenomenon of spatial fix).
Quantitative Easing: a monetary policy by which the central
Increase of private debt: promoting banks reduce interest rates and increase liquidities of banks
homeownership via mortgages. and their loan-giving capacities as a measure used for
relaunching economic growth
Accumulation of capital makes more and
more use of its secondary circuit including Reducing interest rates and promoting mortgages
built environment, real estate
development, housing and processes of Supporting private companies by state aids
circulation, exchange and consumption of
goods. Increasing public debt
Adequate housing becomes more and more non-affordable

for more and more people
Overlapping of the old housing crisis with the energy price

and cost-of-living crisis
Figure 1. Housing politics and accumulation of capital via the housing sector in different capitalist regimes
while many people lost their mortgaged properties East cities competed with each other to offer
due to debts they could not pay in critical times. prospects of profit-making in housing, built
environment, re-urbanization, and infrastructural
Quite promptly, a scholarly consensus was built development in different spaces of unevenly
around the understanding of financialization as being advanced global capitalism.
the “increased dominance of financial actors, markets,
practices, measurements, and narratives at various Studies observed that property-led financial
scales, resulting in a structural transformation of the accumulation was adjusted for the post-2008 context,
economies, firms (including financial institutions), showing adaptability (Fields, 2017). For example,
states and households” (Aalbers, 2016, p. 2). single-family foreclosed homes were used as rental
Approaching financialization in shareholding housing after the crisis. Institutional investors
capitalism as a triple movement, including the transformed them into a new asset class, i.e., a single-
involvement of non-financial enterprises in financial family rental asset class. Rental housing has become
processes, the increase of bank-lending towards a favored sector of global investment funds (Aalbers
households, and the financialization of households & Heeg, 2018) and has evolved in two stages. In
themselves from being credit-card users to investing stage 1.0, seven years before the financial crisis, rental
their savings into financial instruments or real estate housing financialization consisted of buying low and
(Lapavistas, 2013) is relevant not only for analytical selling high in the short term. The financialization of
reasons but also for looking for ways how the rental housing 2.0 means that housing portfolios are
economy might be de-financialized. taken over by real estate investment trusts and real
estate funds enlisted on the stock exchange. They
Since 2015, research and publications around housing focus on long-term real estate management and aim
financialization have burgeoned while trying to catch to extract value from formerly not fully commodified
up with the inventiveness of the financial sector across housing. Furthermore, post-crisis, the buy-to-let and
the globe. The latter sought novel investment build-to-rent practices and financialization of
opportunities and state support for legalizing new landlordism (Aalbers et al., 2020) became competitors
financial instruments, such as real estate investment of homeownership-based financialization. Finally,
trusts (Garcia-Lamarca, 2020; Aalbers et al., 2023). after the 2007/2008 financial crisis, even social
Informed by principles of neoliberal governance housing started to be exploited by financial actors
(Jessop, 2022; Brenner, 2004; Hackworth, 2007) and when the private social housing associations began
local autonomy, various Global North, South, and developing housing for profit (Aalbers, Van Loon &

Fernandez, 2017) or when the “care fix” (Dowling, This became visible when the neoliberalization of
2018) directed private capital investment towards capitalism and the austerity measures following the
supported housing that offers care accommodation 2007/2008 crisis occurred in different forms and
to vulnerable groups (Goulding, 2024). rhythms locally due to the countries’ path dependences
and positions in the contemporary global economy.
Housing financialization is also connected to the In Southern Europe, the long dominance of monetarist
variegation of capitalism (Jessop, 2014; Fernandez ideas and neoliberal values in European institutions,
& Aalbers, 2016; Aalbers, 2017; Ward et al., 2018). alongside which countries of the region were
Real State Financial

Market Market
Financialized Real State

Market
Trading lands and buildings between physical and juridical Trading financial instruments between those who have
persons: money capital to sell and those who need capital and want
to buy
• With the aim to use them as residential, retail, office or industrial
spaces Financial instruments:
• With the aim to rent them out
• With the aim to resell them at higher price securities = certificates or other instruments
that have monetary value and can be traded with profit
Calculating the gross yield:
• Equity securities: stocks, ownership certificates of companies that
• In the case of rent: rent/year, divided to the value of purchase are sold as assets
before renting, (ex. 3600 euro/ 50.000 euro) = 7.2% • Debt securities: loans that entitle their owners to sell them with
• The potential increase of the value of the building and land in interest rates and demand/enforce their pay-back as debts
time
Actors of financial market:
Processes that transform housing into a good whose use
value or social value becomes irrelevant compared to its • Banks
• Institutional investors: investment funds, pension funds, insurance
exchange or market value
funds
• Privatization of the housing stock
• Commodification of housing Investment funds:
• Marketization of housing • Hedge funds: administer alternative instruments for risky
investments, which, if they are successful have very high returns
Conditions of the formation of real estate market
• Equity funds: mutual investment funds who invest their assets in
• Private production of homes by private persons ownership certificates of diverse companies
• Private production of homes by institutional real estate developers • Vulture funds: investment funds that purchase financial instruments,
• Deregulating the housing markets (including the private rental for example debts or shares, which are in risk of insolvency
market)
Financialization of real estate development: Financial actors on the real estate markets:
• Purchase of homes via mortgages, a system of loans/debts that • Institutional investors: investment funds, pension funds, insurance
creates profit for banks or other financial institutions funds
• The increase of the role of financial actors that intervene on the real • Types of investment funds: hedge funds, equity funds, vulture funds
estate market • Real estate development companies that are listed on the stock
• The diversification and promotion of financial instruments used on market
the real estate market • Real estate asset managers
• Financial cycles (explosion-recession-recovery-correction) and crises • Holding companies: sell and purchase the (real estate) assets of other
intersect with real estate cycles and crises companies
• Strenghtening of the finance-led housing accumulation: purchase • Institutional landlords: companies with large residential portfolios
of residential portfolios by financial actors to ensure capital that they administer in a way, which assures highest returns to them
accumulation and to the investment funds that co-invest into these portfolios
• Real Estate Investment Trusts: companies that administer the
investments of physical or juridical persons into real estate companies,
investments that are riskier than ownership certificates (stocks) or
bonds
Figure 2. The formation of a financialized real estate market at the intersection of the financial markets with the real estate markets

integrated into the EU, has stimulated the growth of but relative mortgage debts are decreasing while
households’ debt in their pursuit of homeownership house prices are increasing at unprecedented rates.
and later housing financialization (Tulumello, 2021). This is explained by the fact that the former debt-
Despite differences among countries, their housing driven housing dynamics have been supplemented
systems in the post-2014 period were characterized by wealth-driven ones, and private landlordism
by the increasing dominance of institutional landlords, (buy-to-let) is strengthened (Hochstenbach & Aalbers,
even if numerically they were inferior to private small 2023).
owners and landlords. The most damaging effect of
this situation was that it accelerated housing Besides, the Wall Street Consensus, an expression
financialization or the demand for housing asset of financialization of development and aim to design
classes targeted by complex networks of institutional developmental capital markets, advanced as a
landlords that included banks, pension funds and response to the crisis of the old Washington
insurance companies, endowments, and wealth Consensus. The latter targeted the privatization of
managers (Gabor & Kohl, 2022). state companies, liberalization of trade and capital
flows, and fiscal discipline (Gabor, 2021, p. 430). The
5. POST-2020 DEVELOPMENTS IN new consensus changes the state’s role concerning
HOUSING FINANCIALIZATION IN A the market while promoting a new development
agenda in which global finance is defined as a critical
NUTSHELL partner and, to make it investible, development is
The intensification of real estate financialization derisked by the state. In such a paradigm, the state
(Aalbers, Fernandez & Wijburg, 2021) and the governance mediates the construction of new
transformation of housing into an asset class (Gabor development asset classes via transportation and
& Kohl, 2022) reflect the changing investment options urban infrastructure projects. This development
and opportunities during the last few years. The model relies on public-private partnerships, which
growing importance of institutional landlords, from aim “to attract institutional investors and asset
real estate companies (like the German Vonovia) to managers that move capital across borders via
private equity companies (like Blackstone) or pension portfolio flows” (idem, p. 431). The state de-risks the
funds, without a regulatory framework in the EU, was investors’ assets, among others, by assuring subsidies
accentuated by the COVID-19 pandemic for several and guarantees for them, eliminating the risk of
reasons such as: “under cyclical pressures to address nationalizing commodified infrastructure and the risk
pandemic-related increases in public debt, Member of tighter regulations that would affect profitability
States might further withdraw from providing (idem, p. 440).
affordable housing; the Member States might again
rely on institutional landlords as a countercyclical “The new consensus
force to clean up burst housing bubbles; the often
direct involvement of private investors in the changes the state’s role
development of new rental housing, replacing concerning the market while
housing companies is expected to grow;
macroeconomic (fiscal and monetary policies), promoting a new
regulatory and housing policies continue to support development agenda in
house price inflation and institutional ownership”
(Gabor & Kohl, 2022, p.4). which global finance is
Rentierism, tourism-fueled rental housing
defined as a critical partner
financialization, and wealth-driven housing market and, to make it investible,
also show new trends of financialized capitalism. In
rentier capitalism, ownership of key types of scarce
development is derisked by
assets (land, intellectual property, natural resources, the state.”
or digital platforms) is all-important and dominated
by wealthy companies and individuals (Christophers, Finally, in the post-crisis period, housing and real
2020). Tourism-led rentier capitalism’s outcomes estate financialization expanded towards the former
include converting tourism destinations into state-socialist states in Central and Eastern Europe,
financialized accumulation frontiers and extracting which displayed a path of dependent development
tourism rent (Wijburg et al., 2023). In the post-crisis (Ban, 2014, 2019; Vincze, 2015, 2019, 2020). In this
phase of financialized capitalism, a new era of house region, financialization revealed connections with
price rentierism, mortgage debt, and house prices uneven territorial development, as was the case of
do not increase hand in hand anymore as they did, housing financialization in the Global South

(Fernandez & Aalbers, 2019). New trends such as
subordinate financialization (Büdenbender & Aalbers,
2019), financialization in semi-peripheries (Pósfai &
Nagy, 2017; Mikuš, M & Gagyi, 2022; Santos, 2023),
and uneven financialization (Vincze et al., 2023)
started to happen. As observed in Poland, subordinate
financialization is about the hierarchies of international
finance and the unevenness of how global capital is
absorbed in local contexts. Real estate development
is a domain in which core-periphery structures are
(re)produced, and the semi-periphery countries of
the Global South and Central and Eastern Europe
are integrated into worldwide flows of financialization
from positions of subordination while reproducing
dynamics of peripheralization. This happens when
“financial institutions operating in already financialized
economies have extended their operations to semi-
peripheral countries particularly attractive for Western
banks” (Büdenbender & Aalbers, 2019, p. 671). The
conditions needed for the financialization of real
estate in a semi-peripheral context such as Romania,
included privatization and deindustrialization, the
creation of a private financial system with banking
and nonbanking institutions, offering fiscal facilities
for private enterprises, and, at the local level, putting
urbanism into the service of private development of
the built environment of cities. These processes made
the capital-hungry country attractive for multinational
companies and foreign banks. Foreign capital has
contributed massively to real estate development in
Romania since the 1990s, channeling the build-to-rent
type of investments toward shopping centers, retail
and industrial parks, and office buildings. In the past
seven years, the former state-owned, privatized, and
bankrupted industrial platforms were transformed
into generous sites for new mixed-use real estate
developments – thus, ultimately, into assets that are
de-risked for more prominent developers arriving in
the cities already prepared for extensive investments
(Vincze & Florea, 2023).

01
INTRODUCTION

06
SOLVING THE HOUSING QUESTION
AS PART OF A SOCIALIST
ALTERNATIVE TO CAPITALISM
If, as demonstrated in the prior chapter, the housing home as a space of its social reproduction necessary
question is central to the capitalist political economy to further create the surplus value appropriated as
regime, it should also be a pivotal element of its profit by capital; between the production and market
change. Due to the Marxist political economy realization of housing as a commodity that are two
perspective that we assumed, we could reveal how moments of capital circulation, while realization
state and supra-statal politics facilitated the trend of suffers if the purchasing power of labor force is
increasing housing financialization as a process, which reduced.
in the past ten years inflamed the housing affordability
crisis in new ways. Therefore, looking to a socialist The above contradictions should be eliminated to
future, we suggest that a radical transformation of solve the housing question created by capitalism.
(housing) politics could act as a catalyst for changing The solutions must be based on socialist principles
the political economy of housing. that seek to eliminate housing inequality and the
possibility of exploitation of dwellings and people’s
housing needs. This means that there is a need for
In this final chapter of our study, as a measures that primordialize the use or social value
conclusion, we (1) speak in favor of solving of homes over their exchange value; exclude the
the housing-related contradictions and speculative use of money as an investment into
inequalities based on socialist principles; (2) housing as an asset; use the state apparatus and
argue for an answer to the housing question budget to support public housing and assure
that is part of a socialist alternative to conditions of social reproduction for all; and put
capitalism; (3) propose a few measures as housing production into the service of its social
components of a package of radical realization, i.e., producing as many homes as needed
solutions, and (4) suggest ideas regarding a and assuring their financial accessibility for everybody.
non-profit financial system that could
facilitate the production of mass public 2. ADDRESS THE HOUSING QUESTION
housing. (RE)PRODUCED BY CAPITALISM AS A
COMPONENT OF A SOCIALIST
1. BUILD THE SOLUTIONS TO THE ALTERNATIVE
HOUSING-RELATED CONTRADICTIONS In the post-2014 crisis period, a crisis that, in turn,
AND INEQUALITIES CREATED BY was induced by the run-up in housing prices fueled
by mortgage-backed demand and speculations,
CAPITALISM ON SOCIALIST private capital and states created several new means
PRINCIPLES for their cooperation to save the private (financial)
The recent deepening and expansion of residential capital, again, from a crisis induced by capitalism
financialization aggravated the housing-related itself. Together, they created new profitable capital
contradictions in the capitalist political economy investment opportunities for institutional investors
regime (that we discussed in Chapter One): the (in residential real estate). In the European Union,
contradiction between housing’s exchange and use this mainly was connected to how, after 2014, the
value; between the money becoming a new type of European Commission, European Parliament, and
commodity and money used to trade housing as a The Council dedicated themselves to reinventing
commodity; between the individual rights to the financialized capitalism. Their political solutions
private property over a home and the collective revigorated the financial markets by facilitating a mix
nature of state power that would have to support of financial intermediation that relies less on banking
the housing needs of everybody; between labor and and more on capital markets (Fernandez & Aalbers,
capital, while the labor force struggles to get a private 2017). They affirmed that they wanted to avoid
repeating the 2007/2008 banking and mortgage Alternatively, if they are landlords of privately rented
crisis, but instead of eliminating the risks of prior flats, expropriation might happen anytime to serve
trends of financialization, they aimed to improve the the creation of dwellings as objectives of public
functioning of the securitization market, transferring interest.
risk from credit institutions to non-credit institutions
and opening up the property market to institutional Housing activists’ political claims are inscribed on
investors, particularly pension funds. The new the above directions of action. For example, several
securitization schemes of the Capital Market Union European Action Coalition for the Right to Housing
in the EU were inspired by global initiatives, such as and The City campaigns in the past four years focused
the Basel Committee on Banking Supervision on creating a whole non-market housing sector and
proposals and the International Organization of increasing the public and social housing stock (EAC
Securities Commissions, to eliminate the impediments campaigns). Activists demanded that market players
to securitization (EC Proposal, 2015). This is how the not be allowed to invest in public social housing nor
European Commission aimed to remove internal benefit from it in any way whatsoever. So, this type
barriers to capital investments (among others into of housing must remain public property; selling it
real estate) and foster stronger connections with should not be possible. Public social housing has to
global capital markets (EC Green Paper, 2015). belong to a broader category of socialized housing
and should be affordable for tenants, with rents not
Through the continuous privatization of more and exceeding 20% of household income. EU funds,
more societal domains (including housing), European Investment Bank programs, and the public
(residential) market liberalization, and increasing the budgets of the EU Member States covered by the
power of financial capital (in the residential sector), taxes paid by rentiers and developers could finance
capitalism proved once and for all that it is structurally the development of a non-market housing sector.
accountable for the housing crisis and cannot solve To add to examples of radical housing activism, we
it. Therefore, to change this perpetuated status quo should definitely note that, after successfully
of (financialized) capitalism, politics should turn to campaigning for rent control in 2019, the “Deutsche
radical solutions, i.e., the socialist alternative to Wohnen und Co. Enteignen” campaign collected
capitalism. The latter should definitely include 20,000 valid signatures for the referendum regarding
eradicating private property of the means of the expropriation of private profit-oriented real estate
production and the establishment of economic companies, which, in turn, brought a majority of votes
democracy as a means to end the exploitation of (57.6%), for the proposal (dwenteignen.de). In June
labor classes by the owner classes. However, it must 2023, the Senate of Berlin launched a study that
also imply the destruction of the profit-oriented recognized the expropriation of large landlords as
fundaments of housing production, exchange, and compliant with German law. As a result of this
distribution, as well as the creation of a non-profit decision, the expropriation of profit-oriented
financial system. companies that owned 3000 apartments or more
became possible with the compensation of real estate
3. MAKE IT PUBLIC, EXPROPRIATE, corporations below the market value of flats (Vollmer
AND SOCIALIZE: THINK THROUGH & Gutiérrez, 2022).
RADICAL HOUSING MEASURES Similar to the above reasoning, we affirm that the
A package of radical measures should go beyond radical solution to housing financialization should go
the regulation of the residential market via rent beyond the regulation of the financial markets and
control towards measures to substantially increase their interference with the residential real estate
the public and other non-profit housing stock as a market. To change the existing housing regime, there
site emancipated from the market and profit logic. is a need for a totally different, i.e., non-profit,
Among these measures, besides the new public financial system supporting the production and
constructions that, at best, should be provided by maintenance of public housing. In the past ten years,
non-profit public companies, the expropriation of more and more experts have emphasized that there
institutional landlords would be an instrument to end is a need for an alternative financial regime because,
housing exploitation for profit-making. The currently, a mismatch between the existing private
expropriation of institutional residential property finances and people’s needs blocks huge amounts
owners might happen immediately after the of productive investment that could improve the lives
completion of new constructions by transferring a of millions of people (Block, 2022). Some concrete,
significant percentage of their private stock to public more or less radical proposals exist for de-financializing
ownership to make them contribute to an urban housing in the European Union. Experts suggest the
development that mutually benefits everybody. creation of a Sustainable Institutional Housing

framework, which would treat housing as a special 4. CREATE A NON-PROFIT FINANCIAL
asset class within the Social Taxonomy plans of the SYSTEM THAT FACILITATES THE MASS
European Commission, as well as of a European
Housing Fund that would reduce the reliance of
PRODUCTION OF PUBLIC HOUSING
Member States on institutional investors as a The post-2008 political decisions, instead of solving
countercyclical mechanism during periods of crisis the housing affordability crisis resulting from earlier
(Gabor & Kohl, 2022). Others recommend that public state policy choices and interests of capital
spending in the housing sector should be exempted accumulation, intensified this crisis due to how they
from national budgetary limits, the financial markets contributed to subordinating public housing needs
be more tightly regulated at the European level, to the global corporate landlords’ profit-making
housing be exempted from competition rules, and interests. Acknowledging this equals recognizing the
the EU should increase its financial contribution to need to look for a solution that reverses such logic
housing policy, both through its main investment and, most importantly, to put the financial investors’
branch (the European Investment Bank) and by resources to benefit a city’s public housing stock.
allowing the use of Structural Funds for housing
production with no restrictions (Tulumello, 2020). However, the challenge to solving the housing
According to the perspective of the former UN question produced by capitalism needs to go further
rapporteur on the right to housing, states must than that, towards thinking about how capitalism will
develop and implement human rights-based housing end (Streeck, 2017); how postcapitalist politics should
strategies; ensure that any investment in housing rethink the economy (Gibson-Graham, 2006); how
contributes to affordable, secure housing and social twenty-first-century socialism would look like (Gilbert,
and non-market housing is available for those in need; 2020; Fraser, 2020); what kind of alternatives exist
and require institutional investors to recognize and for moving beyond capitalism (Durand, 2016); or
implement their human rights responsibilities (The how to de-financialize the housing sector by
Shift Directives, 2022). dismantling finance-led housing, identifying
sustainable banking and alternative housing models,
The authors of this study recently emphasized that and adopting different modes of urban governance
different political and civic actors of democratic (Wijburg, 2021). Following such a line of thought,
socialism should target policy-makers and mobilize we highlight proposals in two steps.
the labor classes through campaigns to increase
pressure on them. The major aims of such endeavors First, we should consider how one may imagine the
would be to redirect the EU economic governance democratization of the financial system as part of the
towards the benefit of people over profit and to solution to the housing question of capitalism.
envision a Socio-Economic Union with housing Experimentation with a variety of reforms that seek
socialization at its center. They affirmed that, in the to erode the dominance of capitalist firms and expand
domain of housing, this would mean the creation of the democratic character of the state must gain
a significant number of public housing to respond momentum (Wright, 2019). We should think about
to the real needs and counterbalance the market; finance without financiers or how to take financial
the elaboration of democratic mechanisms by which democratization towards a transition to socialism and
the public housing stock would be governed by a democratize investment and banking (Block et al.,
public institution democratically controlled by the 2022). The democratization of finance can be thought
tenants; and controlling and democratizing finance of in the following directions: “to weaken the
that flows through the housing sector (Vincze & dominance over the financial system of a relatively
Betavatzi, 2023). small number of giant private financial firms … and
to create a financial system in which public and
“The major aims [...] would nonprofit institutions control a significant share of
financial flows”; “to democratize corporations
be to redirect the EU themselves by giving employees greater choice in
economic governance corporate decision making”; “to expand the share
of investment organized by small and medium-sized
towards the benefit of enterprises, employee cooperatives and public
people over profit and to entities”; and to allocate credit in a way that matches
democratically derived priorities (Block, 2019, pp.
envision a Socio-Economic 485-486).
Union with housing Second, we must critically revisit the legacies of state
socialization at its center.” socialism regarding a financial system serving the

mass production of public housing. To highlight some
ideas concerning this, in what follows, we briefly
present the Romanian case of state socialism (Vincze,
2023/2024). The latter displayed a mixed housing
regime, in which the state while implementing an
ambitious and strict housing construction plan across
the country, recognized but controlled the personal
property on housing to respond more efficiently to
the housing needs linked to intense socialist
industrialization. The construction of almost three
million new housing units by the state between 1951
and 1989 (Anuarul Statistic al României 1990, 540)
became possible due to the centralized planning
system with a financial plan of income and expenses
at its center. Moreover, the state ownership over the
financial institutions and the state-controlled credit
schemes also facilitated the allocation of state money
for the production of homes by state enterprises and
the population. The housing units, whose construction
happened in the economic sector of social production,
were not simply individual consumption items. The
creation of new homes was considered an investment
in economic development or accumulation because,
as a collective consumption good that responded
to the needs of the labor force, housing contributed
to the extended reproduction of the economy. The
surplus value created by the labor force within the
state-owned enterprises was collected by the central
state and redistributed to ensure financial support
for public housing, healthcare, and education for the
whole population.
01
INTRODUCTION

EPILOGUE
Digging up the structural causes of the housing housing buildings, freezing rents and expropriating
question and its manifestation in financialization big landlords, assuring fair mortgage contracts. Some
enables us to define the main political conclusion of of these demands are feasible to be implemented
our study. This is a call to transcend reformist measures in capitalism. However, we re-emphasize the need
targeting the housing crisis, which could not solve it to surpass them, be more radical and courageous,
for good as a whole and would only continue to and prepare for systemic changes with plans in this
reproduce the contradictions and inequalities sector, too, ensuring that the root causes of the
endemic to capitalism. problem will not be reproduced.
A simple fact to remind us from the recent past is Ideas discussed in Chapter Six of our study about
enough to accept this conclusion: the states and democratizing finance and practices of a centrally
global actors solved the 2007/2008 financial crisis planned non-profit financial system to sustain the
that left many indebted people unhoused by rescuing production of mass public housing may inspire the
the banks, dispossessing populations via austerity political left to contribute to overcoming for good
measures, and increasing public debt that was used housing financialization and the permanent crisis it
to ensure profit or investment opportunities to creates. However, to induce change beyond political
companies. Furthermore, the indebtedness of the discussions, there is a need to elaborate in concrete
states reiterated their dependency on the private detail the politics of a housing economy that enables
sector when it came to housing production and was the states to radically change their market- and
part of the post-2014 context in which new ideas profit-based financialized housing regimes as part
were created about how to support institutional of a larger socialist alternative to capitalism.
investors as a source for housing and infrastructural
development complementary to banks. The lack of Transformative actions should target the restoration
public investment in public housing continued to be of the social or use value of housing. This is not “only”
a reality. Social housing continued to undergo about ensuring housing rights by social policies, but
residualisation, while the concept of “affordable it is about a democratic economic system with a
housing” created more confusion than solutions democratic financial regime at its center that provides
about what they really were and whom they served. investment resources into the housing sector
according to the actual needs of people and not to
Nowadays, the housing affordability crisis has become the interests of the private capital. Satisfying housing
so profound and far-reaching that, temporarily, for needs via public housing that is adequate and
many people, it would mean an improvement if the financially affordable is not a gift. This is how to justly
capitalist European Union and its Member States honor labor that creates surplus value and generates
would start investing in public housing and regulating income for the state to cover the costs of public
the financial and real estate actors within and across investments (in housing, healthcare, and education),
countries. But can the profit-maximization-based which should be accessible to all instead of allowing
capitalist system really afford such solutions? As we private owners to appropriate them. This option
presented in Chapter Four, several concrete proposals regarding the solution to the housing question not
have been developed in different academic, civic, only makes possible housing justice for all but also
or political circles in Europe in the past few years in ensures economic production and social reproduction
these directions. Among them are an EU-level in a society without exploitation and patriarchal and
Housing Strategy, a Social Housing Action Framework, racial oppression.
a Social Taxonomy and Sustainable Institutional
Housing Framework, a Housing Red Flag Rule, a
European Housing Fund, the redefinition of the
Housing Affordability Index, defining a minimum EU
standard regarding the number of public social
01
INTRODUCTION

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FROM CRISIS

Housing Financialization and the EU 1

B-1047 Brussels, Belgium

+32 (0)2 283 23 01

2 Housing Financialization and the EU

I.- TRENDS AND ACTORS OF HOUSING FINANCIALIZATION 13

III.- THE ROLE OF EU POLICIES IN HOUSING FINANCIALIZATION 35

IV.- EXISTING PROPOSALS TO SOLVE THE HOUSING CRISIS 40

V.- FRAMING THE HOUSING QUESTION IN CAPITALISM FROM A MARXIST PERSPECTIVE 45

VI.- SOLVING THE HOUSING QUESTION AS PART OF A SOCIALIST ALTERNATIVE TO CAPITALISM

Housing Financialization and the EU 3

4 Housing Financialization and the EU

Eniko and Eva’s study is a very welcome and timely

//Clare Daly, MEP

Housing Financialization and the EU 5

Housing Financialization and the EU 7

8 Housing Financialization and the EU

Housing Financialization and the EU 9

10 Housing Financialization and the EU

Housing Financialization and the EU 11

Housing Financialization and the EU 13

14 Housing Financialization and the EU

Figure 3. Owner occupation rates in Euro area 19. Source: EMF

Housing Financialization and the EU 15

16 Housing Financialization and the EU

Housing Financialization and the EU 17

future value of their

C. THE PRIORITIZATION OF CAPITAL D. THE PARTICIPATION OF PUBLIC

18 Housing Financialization and the EU

Housing Financialization and the EU 19

20 Housing Financialization and the EU

The R-REITs (Residential Real Estate Investment

Others specialize in mortgages and do not hold

Housing Financialization and the EU 21

Housing Financialization and the EU 23

24 Housing Financialization and the EU

Housing Financialization and the EU 25

26 Housing Financialization and the EU

Housing Financialization and the EU 27

28 Housing Financialization and the EU

Housing Financialization and the EU 29

In response to questions five and six concerning the

30 Housing Financialization and the EU

Housing Financialization and the EU 31

The soaring interest rates had a negative impact on

32 Housing Financialization and the EU

Housing Financialization and the EU 35

36 Housing Financialization and the EU

Housing Financialization and the EU 37

38 Housing Financialization and the EU

40 Housing Financialization and the EU

Housing Financialization and the EU 41

A. Financial markets need to be regulated more

B. Create a Sustainable Institutional Housing

42 Housing Financialization and the EU

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46 Housing Financialization and the EU

Housing Financialization and the EU 47

3. The contradiction between individual rights to