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Differentiation of rental housing financialisation and its socio-spatial impact in China: Interplay between the state and financial sectors
Abstract The financialisation of rental housing (FRH) has been recognised as a major force behind neighbourhood change and a threat to the right to adequate housing worldwide in/after the 2010s. However, the differentiation of FRH and its impact on housing rents across countries, cities, and neighbourhoods remain understudied. This paper fills this gap by taking China as a case. First, through the lens of state entrepreneurism, we conceptualise how the interplay between the state and financial investors caused the shift of the FRH economy from the venture capital-led asset-light business model to the state-orchestrated asset-heavy business model. Second, we examine how FRH affects local housing rent differently across business models and cities using the housing economics approaches and big data analytics. The analysis results suggest that the differentiation of the socio-spatial consequences of FRH is caused not only by financial investors' motivation to capitalise on the local population and neighbourhoods but also by the state's motivation to employ financialisation to serve its policy objectives. This paper advances the understanding of the variegated FRH under state entrepreneurialism. It also informs the policies about which neighbourhoods and cities are most in need of interventions to mitigate the negative effects (e.g., rent inflation and neighbourhood environment downgrade) brought about by FRH.
Highlights The differentiation of the financialisation of rental housing (FRH) and its impact on rents across countries, cities, and neighbourhoods remain understudied. We conceptualise the logic and examine the socio-spatial impact of variegated FRH economy in five Chinese cities. Financial investors’ motivation to capitalise on the local population and neighbourhoods and the state’s motivation to employ financialisation for its policy objectives caused the differentiated FRH economy. The asset-light FRH causes rent inflation while the asset-heavy addresses the housing demand but leads to neighbourhood environment downgrade.
Differentiation of rental housing financialisation and its socio-spatial impact in China: Interplay between the state and financial sectors
Abstract The financialisation of rental housing (FRH) has been recognised as a major force behind neighbourhood change and a threat to the right to adequate housing worldwide in/after the 2010s. However, the differentiation of FRH and its impact on housing rents across countries, cities, and neighbourhoods remain understudied. This paper fills this gap by taking China as a case. First, through the lens of state entrepreneurism, we conceptualise how the interplay between the state and financial investors caused the shift of the FRH economy from the venture capital-led asset-light business model to the state-orchestrated asset-heavy business model. Second, we examine how FRH affects local housing rent differently across business models and cities using the housing economics approaches and big data analytics. The analysis results suggest that the differentiation of the socio-spatial consequences of FRH is caused not only by financial investors' motivation to capitalise on the local population and neighbourhoods but also by the state's motivation to employ financialisation to serve its policy objectives. This paper advances the understanding of the variegated FRH under state entrepreneurialism. It also informs the policies about which neighbourhoods and cities are most in need of interventions to mitigate the negative effects (e.g., rent inflation and neighbourhood environment downgrade) brought about by FRH.
Highlights The differentiation of the financialisation of rental housing (FRH) and its impact on rents across countries, cities, and neighbourhoods remain understudied. We conceptualise the logic and examine the socio-spatial impact of variegated FRH economy in five Chinese cities. Financial investors’ motivation to capitalise on the local population and neighbourhoods and the state’s motivation to employ financialisation for its policy objectives caused the differentiated FRH economy. The asset-light FRH causes rent inflation while the asset-heavy addresses the housing demand but leads to neighbourhood environment downgrade.
Differentiation of rental housing financialisation and its socio-spatial impact in China: Interplay between the state and financial sectors
Luo, Zixin (author) / Zhang, Mengzhu (author) / Yeh, Anthony (author) / Dai, Lingyun (author) / Qiao, Si (author)
Cities ; 146
2023-12-31
Article (Journal)
Electronic Resource
English
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