Ryan-Collins et al. (2017) chapter 5 Flashcards
to become confident on the role of financialisairion of land and housing (7 cards)
What is the central argument of Chapter 5 in Ryan-Collins et al. (2017)?
Housing has shifted from being primarily a place to live to becoming a financial asset, central to understanding the housing affordability crisis.
What role does mortgage credit expansion play in the financialisation of housing?
Deregulation allowed banks to expand credit, especially mortgage lending, which inflated house prices.
How did mortgage debt change between 1980 and 2008 in many countries?
Mortgage debt grew significantly, often outpacing GDP growth.
How is land used as collateral in the financial system?
Land and property are used as collateral for loans, creating a feedback loop where rising land values increase borrowing capacity, which fuels further price increases.
What is the impact of financialisation on wealth inequality?
Financialisation has exacerbated wealth inequality, benefiting property owners while pricing out renters and first-time buyers.
How does financialisation contribute to housing market volatility?
Easy credit and speculative investment lead to boom-bust cycles, making housing markets more sensitive to monetary policy and global capital flows.
What policy solutions do Ryan-Collins et al. (2017) propose to address housing unaffordability?
Regulating mortgage lending, taxing land and property wealth, reinvesting in social housing, and reframing housing as a social good.
