How Financial Institutions are Reshaping Homeownership for Younger Generations

How Financial Institutions are Reshaping Homeownership for Younger Generations

The housing crisis has become one of the most pressing economic issues in the developed world. It is no longer simply a matter of price inflation, but a structural crisis related to the nature of property ownership. In recent decades, there has been a radical shift in how housing is viewed; real estate has moved from being a "shelter commodity" to a "financial asset" traded on global markets. This shift, driven by the rise of Real Estate Investment Trusts (REITs) and institutional capital, has placed younger generations in near-impossible competition with financial entities possessing enormous cash surpluses. Economic analysis of this phenomenon reveals that the real estate market today operates according to the logic of "asset management," not "housing provision." Investment companies purchase large tracts of residential properties and convert them into long-term rental units, thereby increasing demand and driving prices upward. For the institu…