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However, as crises like the recession of 1973 unfolded, the housing market faced significant challenges. Despite an initial recovery after the 2008 crash, rising interest rates and a surge in construction during the pandemic led many to invest heavily in luxury apartments, dismissing the necessity for affordable housing.
The Financialization of Housing
The landscape shifted dramatically during the pandemic as remote work surged and new development opportunities emerged. Developers capitalized on this by building high-end apartments with appealing amenities, often packaged and sold to finance institutions. This financialization of the real estate market created a detachment between builders and the individuals who would inhabit the spaces they constructed.