Housing Allocation and the Moneyization of Society
With the rise in population growth and urbanization, the need for accessible and affordable housing has grown exponentially. To some degree, this has led to the monetization of housing, or the valuation of housing based solely on its market value. This has been accompanied by an increasing reliance on the financial market, with more and more people taking out loans and mortgages to purchase housing. This article will explore the implications of the moneyization of housing and the ways in which this has changed the rental landscape.
One of the most obvious impacts of moneyization is that it has created an even larger divide between social classes. Homeownership rates in the US, for example, have been shown to be divided along race and socioeconomic status lines. Those with higher incomes are more likely to have access to mortgage financing, leading to an even higher homeownership rate – often at the expense of lower income households who are unable to afford the cost of a down payment. In addition, people from lower socio-economic backgrounds often find it difficult to secure access to public housing, creating a further divide between social classes.
Another impact of the moneyization of housing is that it has made housing an economic asset, rather than a basic need. This has led to a shift towards more speculative purchases, as investors seek to turn a profit on their investments in property. This in turn drives up prices, making housing less accessible and affordable to those who are on lower incomes.
The moneyization of housing also has implications for rental markets. As the cost of housing continues to rise, affordability becomes an increasingly pressing issue. Many people find themselves priced out of the rental market, as rents become increasingly expensive. This has a particularly damaging effect on vulnerable populations, such as young persons who are unable to secure employment or those on benefits. Those who are already struggling financially find themselves facing further hardship as their housing costs become increasingly difficult to meet.
Finally, the moneyization of housing has had an impact on housing stability. As housing has become more and more expensive, it has become increasingly difficult for people to remain in the same location due to rising costs. This can be particularly problematic for those who have spent a great deal of time and effort in building their lives in one particular area, as their ability to remain there is challenged.
Overall, the moneyization of society has had a far-reaching impact on housing access and affordability. By viewing housing as an economic asset, rather than a basic need, it has become increasingly difficult for those on lower incomes to secure affordable housing. Moreover, the continued drive towards higher prices has had further negative consequences, by Affecting housing stability and rental prospects, in particular for vulnerable populations.
