Financialization of Housing

Answer

Financialization of Housing

            Financialization of housing is an aspect that takes place in the events when housing is treated as a commodity used as an investment and wealth other than one which seeks to meet the social good requirements. Housing should be provided within a nondiscrimination context to ensure that it meets the Human Rights Council requirements as well as reduce the element of homelessness which exists in the community. Evidently, when housing is provided within a nondiscriminatory context, it is highly likely that the prices will be desirable for all people despite their economic category. Moreover, offering adequate housing is a desirable move which seeks to ensure that the number of housing offered in the society meets the existing population requirements. Housing financialization has had its implication on the right to adequate housing. Despite the fact that housing financialization has aided in the process of wealth generation, it is evident that the process has played an effective role in depriving housing with its value as a fundamental human right.

The functioning of Financial Markets and their impacts

            Housing sector is critical to the economy in that it has been transformed by the global financial actors as well as the unprecedented amount of excess capital. The process of housing financialization has created a scenario where housing is considered a commodity rather than a place suited for the support of household dwelling (“United Nations Human Rights”, 2017). It is a means of securing wealth and not an environment where human dignity is observed. With housing financialization, families no longer consider thriving as an option since it is a process which focuses on the generation of wealth as it is considered as an instrument which seeks to offer security to financial instruments. The fact that housing can be traded on the global markets is considered as an effective consideration which matches this requirement. With housing financialization, it is evident housing has lost its value as a universal human right.

            The financialization of housing has increased the rates of homelessness reported in the community. This is driven by the fact that housing is treated as a commodity focused on the generation of wealth. Therefore, its prices will not be set at a level whereby it meets the financial capabilities of the members of the lower socio-economic bracket. Notably, financial corporations are increasingly dominating the housing sector through takeovers, and hence affecting the costs of housing which has spurred the rates of homelessness causing displacements. Approximately 60% of the global assets value is covered by global real estates (“United Nations Human Rights”, 2017). With this value, it is a fact that financialization has promoted the loss of the value of housing in the society which has further deprived it of its brand as the universal human right. Arguably, the real estate players are focused on wealth generation as reflected under their global assets value estimated at approximate $217 trillion. A value higher than the figure recorded by the total rates of GDP.

            Private equity firms have also considered housing as a commodity and as a means of wealth generation. Notably, these institutions consider housing as a haven focused on park excess capital. Through corrupt dealings the institutions have been able to offer anonymous investors with a source of funding arising from taxing shelters for the homeless.

            Financialization has also made housing facilities costly and unaffordable for many. This is reflected through the increased housing prices which further encourage inequality and social exclusion associated with the distribution of the resource. Through the rise in costs, the wealthy in the society are provided with an opportunity to generate more cash while those from the lower economic bracket find it difficult to access housing facilities. As a result, the case of homelessness among the poor is exaggerated which deprives the affected of their fundamental human dignity (“United Nations Human Rights”, 2017).

            The general outlook of the impacts of housing financialization provides a depiction that human rights accountability should be ensured. The major focus is to guarantee that the associated institutions focus on the observance of the human rights obligations.  This can be achieved by fostering a balance between the financial sector requirements and the need to observe social function requirements attached to housing. The states can also take charge through regulation of the efforts of the financial actors as well as the private market to guarantee that they consistently operate to meet the aspects of adequate housing in the society (“United Nations Human Rights”, 2017).

            Housing should be focused on meeting the human dignity efforts and upholding security of the people to meet the human rights requirements. Therefore, private investors alongside other financial actors should focus on meeting the needs of the residents to uphold affordable housing even for the poor residents without considering the efforts of the wealthy only. The rights to housing should be effectively be observe through regulation of the efforts of the financial players in the sector to ensure the accomplishment of adequate housing needs.