The Financialisation of Rental Housing 2.0: Releasing Housing into the Privatised Mainstream of Capital Accumulation

Wijburg, Gertjan; Aalbers, Manuel B.; Heeg, Susanne

doi:10.1111/anti.12382

Cited by 167 publications

(169 citation statements)

References 43 publications

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“…16. A notable exception are Wijburg and Aalbers (2017) who suggest that financialized capitalism in Germany is following an alternative pathway, which gave rise to the observation that Germany was not following global trends (see also Wijburg, Aalbers, & Heeg, 2018). 17.…”

Section: Resultsmentioning

confidence: 99%

A fresh look at contemporary perspectives on urban housing affordability

Haffner

Hulse

2019

International Journal of Urban Sciences

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The literature on housing affordability has grown rapidly since Hulchanski [1995, p. 489. The concept of housing affordability: six contemporary uses of the housing expenditure-to-income ratio. Housing Studies, 10(4), 471-491] declared that housing researchers should avoid using the term since it is not a robust concept and measurement often lacks validity. In the ensuing 24 years, however, scholars have continued to debate the definition and measurement of housing affordability as well as the prevalence and type of 'housing affordability problems' in various countries. This paper is a think piece which takes a fresh look at housing affordability as a concept which has persisted despite considerable contestation and scepticism about its use. It provides a critical and multidisciplinary assessment of housing affordability starting with early conceptualization of the nexus between economic principles and social norms about housing and living standards to a reworking of housing affordability in the twenty-first century as an urban issue affecting lower and middle-income households in cities, as a consequence of the financialization of housing and urban restructuring. It argues that the housing affordability concept has been repurposed such that the focus is less on understanding housing expenditures in contributing to poverty and disadvantage within the domain of social policy and more on the urban policy challenges of growing inequities in access to urban resources. The paper highlights the challenges for urban policy in adopting and adapting rather than rejecting a multidimensional concept of housing affordability and consequently the importance of new ways of measuring urban housing affordability.

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Section: Resultsmentioning

confidence: 99%

A fresh look at contemporary perspectives on urban housing affordability

Haffner

Hulse

2019

International Journal of Urban Sciences

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“…Although this turned out to be a joke, it is a likely future development now that rental housing is increasingly treated as an asset class by international investment funds (Fields ; Wijburg et al . ).…”

Section: Fifth‐wave Gentrificationmentioning

confidence: 97%

“…Real estate, including housing, is increasingly treated as ‘just another asset class’ (van Loon & Aalbers ; see also Merrifield ; Guironnet et al ; Calbet I Elias ; Fields ). Corporate landlords, backed by capital from Wall Street or the City of London, include real estate investment trusts (REITs), real estate private equity (REPE) and other large investment funds that increasingly target not just commercial real estate but also low and middle‐income residential real estate for investment (Beswick et al ; Byrne ; Fields ; Gotham ; Teresa ; Rouanet & Halbert ; Searle ; Waldron ; Wijburg et al ) . Although the effects of REITs, REPE and other investment funds are mixed and can include downgrading of the stock, these funds typically try to maximise rents and benefit from gentrification potential.…”

Section: Fifth‐wave Gentrificationmentioning

confidence: 99%

Introduction To The Forum: From Third To Fifth‐Wave Gentrification

Aalbers

2018

Tijd voor Econ & Soc Geog

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140

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‘The Changing State of Gentrification’ (2001) by Jason Hackworth and the late Neil Smith is one of the most influential papers ever published in TESG. By introducing three waves, or periods, of practices and patterns of gentrification, it changed the way we think about gentrification. This Introduction to the Forum discusses the three waves introduced by Hackworth and Smith as well as fourth wave introduced by Lees et al. Finally, I will argue that during the global financial crisis we have entered fifth‐wave gentrification. Fifth‐wave gentrification is the urban materialisation of financialised or finance‐led capitalism. The state continues to play a leading role during the fifth wave, but is now supplemented – rather than displaced – by finance. It is characterised by the emergence of corporate landlords, highly leveraged housing, platform capitalism (e.g. Airbnb), transnational wealth elites using cities as a ‘safe deposit box’, and a further ‘naturalisation’ of state‐sponsored gentrification.

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“…The SFR REIT sector has grown tremendously since that time, both internationally and in the U.S. Although the latter, particularly the Nashville metropolitan area, is the focus of the analysis in this article, research on SFR REITs has emerged in Ireland, Spain, Greece, and across Europe in response to the same structural shifts brought about by the global financial crisis [12,13]. In the U.S. context, from the onset of the global financial crisis to 2007 over $33 billion had been invested in over 200,000 properties owned by REITs [4].…”

Section: The Emergence Of Real Estate Investment Trustsmentioning

confidence: 99%

The Impact of Single-Family Rental REITs on Regional Housing Markets: A Case Study of Nashville, TN

et al. 2018

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The U.S. Congress authorized the creation of real estate investment trusts (REITs) in 1960 so companies could develop publically traded real estate investment portfolios. REITs focus on commercial property, retail property, and rental property. During the last decade, REITs became more active in regional housing markets across the U.S. Single-family rental (SFR) REITs have grown tremendously, buying up residential properties across the country. In some regional housing markets, SFR REITs own noticeable shares of single-family homes. In those settings, SFR REITs take large numbers of housing units off of real estate markets where homeownership transactions occur and manage these properties as part of commercial rental inventories. This has resulted in a new category of multiple property owners, composed of institutional investors as opposed to individual investors, which further exacerbates property wealth concentration and polarization. This study examines the socio-spatial distribution of properties in SFR REIT portfolios to determine if SFR REIT properties tend to cluster in distinct areas. This study will focus on the regional housing market in Nashville, TN. Nashville has one of the most active SFR REIT sectors in the country. County tax assessor records were used to identify SFR REIT properties. These data were joined with U.S. Census data to create a profile of communities. The data were analyzed using SPSS statistical software and GIS software. Our analysis suggests that neighborhoods with clusters of SFR REITs fit the SFR REIT business model. Clusters occur in communities with newer homes, residents with higher levels of educational attainment, and middle to upper-middle incomes. The paper concludes with several recommendations for future research on SFR REITs.

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The Financialisation of Rental Housing 2.0: Releasing Housing into the Privatised Mainstream of Capital Accumulation

Cited by 167 publications

References 43 publications

A fresh look at contemporary perspectives on urban housing affordability

A fresh look at contemporary perspectives on urban housing affordability

Introduction To The Forum: From Third To Fifth‐Wave Gentrification

The Impact of Single-Family Rental REITs on Regional Housing Markets: A Case Study of Nashville, TN

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