Interpreting the Changing Meaning of the Peri-Urban Holiday House: The Complex and Paradoxical Nature of Housing Financialisation

Abstract

ABSTRACT In recent studies of housing financialisation, a “financial paradox” has been identified in which owner-occupied houses are simultaneously places of ontological security and financial investment. This paradox influences the way owner-occupiers interpret their primary and holiday houses, particularly if the latter are located in sought after high amenity locations. In this paper, we argue that, faced with rapidly increasing residential property prices, many long-term owners reluctantly reconceptualise their understanding of their holiday house as both a recreational and financial asset. Our study uses in-depth interviews with owners of holiday houses on Waiheke Island, Auckland, Aotearoa New Zealand to identify how they are interpreting and managing the normalisation of this paradox. The island is historically popular for holiday houses and is currently experiencing substantial property price increases. It is therefore an ideal place to study the complex and paradoxical nature of housing financialisation and thus potential biases in the housing market.