More than a housing crisis: State-led financialization and the restructuring of urban housing in Europe

This commentary situates the ongoing European housing crisis within ongoing processes of housing financialization, challenging approaches adopted in the European Commission’s Affordable Housing Plan that treat housing unaffordability primarily as a problem of supply shortages and investment gaps. In this way, we argue that such an approach neglects the key role of finance and the increasingly active role of state actors in reshaping housing markets in favor of financial capital. Drawing on contributions from this special issue, we focus on two interrelated developments: the diversification of housing into specialized sectors for investments and the supporting role of the state in processes of asset-based accumulation. These processes unfold unevenly across urban contexts, contributing to new modes of dispossession and displacement. Building on this, we argue that the European housing crisis requires answers that involve reprioritizing housing as a social right rather than an asset class.