Safe havens: overseas housing speculation and opportunity zones

Abstract

Since the 2008 Global Financial Crisis, financialization and housing speculation have expanded in geography, generalized in the political economy, and ingrained into the regulatory system. This article adds to the growing understanding of global capital flows and transnational housing investment. The main contribution of this paper is an articulation of ‘safe havens’ — districts designed as a harbor for global capital; a place of refuge during market uncertainty; and a place offering favorable conditions for capital growth. In New York, London, and Melbourne, luxury districts functioned primarily as investment vehicles to facilitate the circulation and expansion of capital after the financial crisis. Case studies draw upon census data, non-governmental and industry reports, academic studies, and local news sources and find that (1) capital funnelled into local housing through government incentivization; (2) vacancy increased in areas with rapid price rises; and (3) new investment zones were constructed to accommodate overflows of safe-haven demand and fuel recovery from the financial crisis.