Housing microfinance and the financialisation of housing in Latin America and beyond: an agenda for future research

Abstract

This paper critically examines housing microfinance in Latin America and beyond in the context of ongoing debates about the financialisation of housing. The focus in these debates has been on the de- and re-regulation of mortgage markets, increases in mortgage securitisation and shifts in ownership structures. My argument is that in the international debates about the linkages between housing and finance the issue of housing microfinance tends to be overlooked. The term housing microfinance refers to small value, non-mortgage loans for purposes of home improvement, renovation and incremental building. Mainstream approaches in development policy see housing microfinance as a crucial strategy to help provide adequate shelter and respect the needs of the urban poor. However, the past 15 years have also seen the emergence and diversification of structured financial products for global institutional investment in microfinance, with housing microfinance being viewed as a potential growth market by the global finance, construction and retail sectors. The paper provides an overview of the ways in which the markets for housing microfinance are currently expanded in different countries in the region and globally. The review concludes by outlining key avenues for future research.