The housing paradox: more financing - less affordability?

Two decades ago, housing problems seemed to be solved once for ever in many developed countries. Then something unusual happened: capital investments into the housing sector grew sharply, and – within a few years– so did housing problems.   Economists call this phenomenon the "financialisation of housing". Indeed, as housing increasingly became a financial asset, a tool to keep the value of savings, it lost its social meaning. Moreover, new investments led to sharp price increases crowding out families from the opportunity to acquire new units, and at times even from their existing housing.   In this article we analyse first the process itself, then give an overview of national and local government reactions, and how ...