Inequality and financialisation

Abstract

This chapter details the dramatic increase in investor flows into real estate in Ireland and how global investors view the ‘build-to-rent’ sector as a key area for investment. It shows that the non-household sector significantly increased its role in buying residential property in Ireland from 2013 onwards. It sets out how global equity, institutional investors and real estate funds are moving into student accommodation making it less affordable. It looks at how new planning laws promote micro-apartments and how such build-to-rent co-living spaces fail to provide an acceptable living environment. It explores the downsides of global investment and hyperfinancialisation and is adding significantly to demand, thus inflating property prices and rents and how corporate landlords are becoming a real force and have the power to set new (higher) market rents in certain areas embedding a embeds a permanent unaffordability into the housing market. It shows how Ireland is facilitating the global financialisation of housing through its tax and regulatory regime for REITs, global real estate investors and vultures which is of international significance as it is both facilitates, and increases the profitability in, equity investment in residential property.It finishes by detailing the new forms of inequality resulting from financialisation of housing - the winners and losers in the Irish housing system.