The financialization of housing

Document Type:Essay

Subject Area:Finance

Document 1

Nowadays, housing is considered as a way to acquire wealth, rather than a commodity for human dwelling. Housing is no longer considered a place for human living or where a community thrives. Housing is nowadays used as financial instruments and a commodity for trade in the global market. Housing has lost its original purpose of serving human beings. The paper talks about the financialization of housing, impacts on the housing sector, and also reports gathered from India and Portugal visits. Research conducted in the U. S. showed that five years after the recession, about thirteen million foreclosures caused more than nine million residents to be displaced. In the same period, there were more than half a million foreclosures in Spain which resulted in over 300,000 evictions.

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These evictions are enough evidence to the violations of human rights to an adequate and proper housing (United Nations Human Rights, 2017). The rich people continue to accumulate wealth as the poor continue to lack housing. This increase in Financialization not only denies people human security but also dignity, therefore, it becomes difficult to buy houses due to the marginalization of migrants, women, and people with disabilities. Speculative commodity dehumanizes human beings. Global Financial investors and real estate businesses are no longer concerned with what or which kinds of housing residents require. When these entities buy housing, it is difficult to find anyone capable of violating human rights. States have also prohibited foreclosures and evictions that result in homelessness. Conclusion States needs to regulate and engage with financial and private actors to make sure that the policies and actions in which they function are consistent with the theme of the adequate housing to all residents.

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