The “financialization” of housing means that housing is treated as a commodity – a vehicle for wealth and investment – rather than a human right and a social good for people and communities.
It is a trend that describes the growing dominance of financial actors in the housing sector. This started in the 1990s when Canada allowed the creation of real estate investment trusts and permitted pension funds to invest in financial markets and instruments.
Financialization treats housing like a financial asset and a tool for investor profits, instead of a fundamental human right for everyone. Our research estimates 20-30 % of Canada’s rental housing is financialized, with disadvantaged groups most impacted.
Financialization is a human rights issue. It has significant consequences for the affordability, security of tenure, and habitable conditions of rental housing for tenants. It is associated with elevated risks of illness and death for seniors and people with disabilities in long-term care facilities.
Addressing financialization is a priority issue for the Federal Housing Advocate.