How the 'Financialization of Housing' is Physically Changing Cities

The increasing investment value of real estate has led to tangible changes in the way buildings are designed and function, one author argues.

2 minute read

June 7, 2021, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Vancouver Skyline

Bowe Frankema / Flickr

In what Leilani Farha, United Nations special rapporteur on adequate housing, calls "the financialization of housing," the rise in real estate investment has radically reshaped cities and "supersede[d] the traditional role of buildings," writes Nate Berg in Fast Company to introduce an interview with author Matthew Soules.

In the recently published book Icebergs, Zombies, and the Ultra Thin: Architecture and Capitalism in the Twenty-First Century, Soules "argues that value creation is being prioritized over the fundamental purposes of buildings and homes."

"The title of the book calls out three of the ways this is manifesting. Icebergs are the homes of the superrich in London that, due to building height rules, can see their values increased by adding new levels deeper and deeper below ground. Zombies are the half-dead neighborhoods in places like Dublin and southern Spain where speculative development and investment homes often sit empty. Ultra-thins are the tall luxury towers now popping up in cities around the world that serve less as places to live than as places to invest and grow the buyer’s money."

In the interview, Soules explains that these manifestations of finance capitalism are signs of the ways cities are being reshaped to serve capital and increase the liquidity of a traditionally non-liquid asset despite the needs of residents. In Soules' hometown of Vancouver, which is experiencing a huge demand for apartments with two or more bedrooms, "developers continue to build one-bedroom apartments and make their profits this way, to sell out projects over 50% to people who seem drawn to the investment power of the one-bedroom apartments that they then go and rent out, or in some cases let sit empty." According to Soules, "the logics of investment capital are having this slow but profound effect over time, that’s happening so in front of our eyes that it’s hard to even see, of diminishing the social richness of our living environments."

Tuesday, May 18, 2021 in Fast Company

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

"Altadena - Not For Sale" yard sign in front of burned down house after Eaton Fire in Altadena, California in January 2025.

Half of Post-Fire Altadena Home Sales Were to Corporations

Large investors are quietly buying up dozens of properties in Altadena, California, where a devastating wildfire destroyed more than 6,000 homes in January.

July 7 - Dwell

Dense multistory residential buildings in hilly San Francisco, California.

Opinion: What San Francisco’s Proposed ‘Family Zoning’ Could Really Mean

Mayor Lurie is using ‘family zoning’ to encourage denser development and upzoning — but could the concept actually foster community and more human-scale public spaces?

July 7 - The San Francisco Standard

Blue self-driving Ford Transit van shuttle in Jacksonville, Florida.

Jacksonville Launches First Autonomous Transit Shuttle in US

A fleet of 14 fully autonomous vehicles will serve a 3.5-mile downtown Jacksonville route with 12 stops.

July 7 - Smart Cities Dive

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA