Institutional buyers who treat housing as an investment product become disconnected from the impacts of higher rents, displacement, and housing instability.

Writing in Strong Towns, Edward Erfurt argues that the financialization of housing — “a system that increasingly treats homes like stocks” — is a significant component of the current housing crisis.
According to Erfurt, “The U.S. housing market is entangled with the financial system. We have been trained to see rising rents and home values as a sign of economic strength, but when those increases are the result of artificial manipulation rather than organic demand, that “growth” is an illusion.”
Investors who buy housing as a financial product don’t consider the ramifications of higher rents, displacement, and the destabilization of communities. “They are investing in a financial product, not in shelter. Their focus is on whether their fund continues to grow.”
Erfurt notes that our local planning systems perpetuate this behavior with laws and regulations that often favor large-scale developers who can afford to navigate intricate permitting processes. For Erfurt, the solution is a shift in how we treat housing. “It's not a speculative financial instrument but an essential piece of infrastructure for a healthy community. That means supporting policies and reforms that empower small-scale development, remove artificial barriers, and restore competition to local housing markets.”
FULL STORY: The Rent Is Too Damn Artificial

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

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

Amtrak Cutting Jobs, Funding to High-Speed Rail
The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

Ohio Forces Data Centers to Prepay for Power
Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

MARTA CEO Steps Down Amid Citizenship Concerns
MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant
A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.
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