Ffinacialization and the Housing Market

Q.3 Financialization is a complex process that regards global finance as a major force driving all economic and political support. In this paper, we will evaluate how the collapse of the real estate market has led to the financial crisis of 2008 in order to understand the concept and the mechanism of financialization. According to the introduction of contemporary economic geography, "financialization" is a variety of things that are converted into financial products for transactions between individuals and businesses in the international capital market.

The UN Special Rapporteur on adequate housing in 2017 defines housing finance as "structural changes in the housing and financial markets and global investment.Housing is considered as a product, the means to collect wealth is finance "In other words, houses are interwoven with increasingly global capital flows; the housing market is now responding sensitively to these flows over the local situation.

All housing markets are local. Domestic figures - housing construction, absence or reporting only on building permits - obscure potential local changes that boost housing prices. Housing needs vary, depending on regional demographics, employment markets, and regional facilities. Housing supply depends on the availability of local land and the cost and complexity of housing development. Local governments adopt policies that affect development through all these mechanisms. If we want to understand the shortage of housing and rectify it, we need to go below the national level.

Affordable housing is regarded as an affordable housing by the country and local government, based on the affordable index of residential housing being recognized. Most of the literature on affordable housing concerns the number and continuation type of mortgage, from emergency housing to provisional housing, non-market leasing (also called social housing or auxiliary housing), formal leasing and informal leasing. It ends with native housing and affordable housing ownership

Compared to the nationwide housing affordability index, the price is affordable. According to the Wells Fargo Housing Opportunity Index, the national index is 58.3% and the average income is 68 thousand dollars. Phoenix's real estate market index is 65.8%. Compared to other states, the Phoenix Investment property is reasonably priced for real estate investors and home buyers. Supply is insufficient. But in Arizona, general real estate construction will improve. The construction of a detached house is estimated to increase by 15% in 2018 (about 32,580 new residential real estate). This is good news for Phoenix single-family rental real estate investors. In contrast, collective housing construction in the Phoenix housing market is decreasing (about 32%). In other words, Phoenix investors are highly competitive with commercial real estate.