Does property serve a social function? Re-imagining real estate in Brazil and beyond

Does property serve a social function? You might think the answer is “yes, of course”. The purpose of a house, for example, is to house people, to serve as a space in which to create a home. These days, though, it seems that houses are more often used as a financial good rather than to serve a direct use like that of providing shelter. This is evident in the vast international system by which land and property are bought and sold according to the supply and demand of the “property market”. In many national contexts, you cannot really be secure in your housing situation until you own your own house. This in many ways dictates patterns of urban development: people will buy or rent property in areas where the property value is low enough that they can afford; meanwhile, wealthy developers have every right to buy up property and profit off of it as they see fit—after all, they paid for it.

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But this is not an inevitable process; in fact, it reflects only one interpretation of what we call “property”, one that fulfills a trajectory of urbanization that seems near impossible to challenge. It is therefore not surprising that the concept of the “social function of property” whereby property must fulfill a social function and cannot merely be used for profit, is increasingly taken up by social movements fighting for the rights to land and housing around the world.[1]

São Paulo is one city where the contradictions of the “property market” are especially apparent, and groups contesting the situation particularly active. The housing deficit is currently estimated to be at 230,000 homes.[2] Meanwhile, there are hundreds of vacant buildings in the city center. In response to this, dozens of sem-teto or “roofless” movements have formed, demanding the right to secure housing and undertaking occupations of vacant buildings to draw attention to the housing crisis. These occupations not only highlight the current urban reality of unequal property ownership, but also put into question the very concept of property.

The private ownership model of property

In his work Unsettling the City, Nicholas Blomley highlights the hegemony of what he calls the “ownership model” of property, where there is generally one definable owner to a clearly delineated piece of land, and property almost exclusively means private property. Private property indicates a certain form of power that seems to have “an independent, nonstatelike quality”, as the idea that someone can exclusively claim a parcel of space is taken for granted.[3] This model came to dictate what kind of property we are supposed to value–i.e., private, owner-occupied, etc.–which in turn raises the overall perceived value of this kind of property, in a process seen as uncontestably determined by “the market”. But only those who are able to buy into this market get the right to property.

People did not always conceive of property in this manner. This particular understanding of property arose to prominence out of a desire to provide order to the city, beginning with the colonization of land. Indigenous groups did not usually conceive of property in the same way as their colonizers, and so a new, more regulated, interpretation of property was necessary in order to physically “settle” the land: “the colonization of land, the physical substance, could not have proceeded without the simultaneous colonization of property, the mental structure for organizing rights to land.”[4] Adrian Blackwell describes how this ownership model then enabled property to be carefully partitioned and therefore easily exchanged in a capitalist market:

The secret of capitalist property lies in the way in which the most grounded and immobile of things—land—can be made to move through its financialization and exchange-ability, while this same property is rendered absolutely solid, reified, as each absentee owner decides who can and cannot enter it.[5]

Thus property has come to be viewed as a parceled good to be bought and sold. Brazilian scholar and planner Raquel Rolnik argues that housing is viewed increasingly as an investment asset in a globalized financial market, rather than as a social good. She explains how, rather than a means to distribute wealth, housing has become a “means to wealth”, where “the value is the possibility of creating more value, which depends on the speed and number of transactions capable of generating value appreciation”. While ideas of housing as commodity confronted various national welfare models in different national contexts, many governments around the world have mobilized a range of policies to “extend market discipline, competition and commodification”.[6] The result has been urban enclaves created for the wealthy and international elite, with the poor confined to peripheral areas (or, in the North American case, “inner city” areas), often with limited basic services and employment opportunities.[7] Clearly in Brazil as elsewhere, this has meant the growth of informal settlements, forming part of an agenda which Rolnik asserts is “to create an urban scenario where the poor don’t exist and at the same time ‘unlock’ the value of land”.[8]

Viewing property and the real estate market as natural and self-evident has a de-politicizing effect. It masks the actors and social processes involved in deciding the “value” and accessibility of property. It assumes that the value of property lies only in its exchange value, and that this value is to be decided by the “market”. It makes it very difficult to imagine that property could be understood in any other way.

Continue reading “Does property serve a social function? Re-imagining real estate in Brazil and beyond”

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If Habitat III wants to uphold the right to housing, it needs to address financialization

This post was originally published on the Development Planning Unit blog on 11 May 2016.

At the start of April, a number of civil society groups, members of NGOs and activists from across Europe met in Barcelona for the European meeting of the Global Platform for the Right to the City. This was in part to complement the Habitat III meeting on Public Space that was to take place later that week. Habitat III will be the third installment of the UN conference on human settlements, held every 20 years. At this Global Platform meeting in Barcelona, priorities relating to the ‘Right to the City’ in Europe and strategic aims for Habitat III, to take place in Quito this October, were discussed.

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Global Platform of the Right to the City meeting in Barcelona

One of the main issues that emerged in the Global Platform meeting was the financialization of real estate. Financialization can be defined as a “pattern of accumulation in which profit-making occurs increasingly through financial channels rather than through trade and commodity production” (Aalbers 2009, p. 284). The financialization of housing refers specifically to the linking of housing markets with finance markets, where housing is viewed primarily as a financial good. This is what allows banks to speculate on land and housing, which causes house prices to rise far beyond what most people can afford. The linking of mortgages with financial products, especially in the United States, was a central factor in the 2008 economic crisis that had catastrophic effects across the globe.

In a working group on the topic, participants exchanged experiences of how financialization has manifested in their respective countries. A member of the Plataforma de Afectados por la Hipoteca (Platform for people affected by mortgages) in Barcelona summarized the particularly dire situation in Spain, where over 400,000 evictions have taken place since 2008. While each European country has its own unique context, many common themes emerged, such as speculation, inflated housing prices, empty homes, the selling off of social housing, and an increase in evictions and displacement. These phenomena were linked to a systematic eroding of regulations that have allowed the financial sector to exploit housing for profit. Continue reading “If Habitat III wants to uphold the right to housing, it needs to address financialization”

Kill the bill!


Thousands of people were out on the streets of London Sunday to protest the horrific housing bill which is currently being rushed through parliament (article in the Independent here). As an outsider to the UK nearly three years ago I was initially struck by the institution of social housing which seemed much more vast and ingrained than in other contexts that I knew. Then I began to understand the many ways in which social housing (or council housing as it is known–referring to the local council in charge of each  administrative area) in the UK is being steadily undermined. Namely, existing social housing is being sold off for private renting, no new social housing is being built, and discussions now center around “affordable” housing which falls on the whim of private developers to provide, which they usually don’t, and which is allowed to be up to 80% of the market rent. Now, this bill really seems like the nail in the coffin of social housing in the UK, rendering housing even less accessible to both council tenants and private renters. I don’t even understand how such a bill, that caters entirely to ensuring private developers make as much money as possible, has managed to pass so quickly through parliament (detailed explanations of the UK legislative system are most welcome).

The #KilltheHousingBill campaign has produced a great video explaining the housing bill.

Last week the Radical Housing Network also produced a spoof newspaper of the Evening Standard–they call it the ‘Standard Evening’, which was distributed at tube stops all over London. The paper, which detailed what London would be like many years in the future if this housing bill passes, can be accessed online here.

cartoonIf you live in the UK, please sign the petition: https://you.38degrees.org.uk/petitions/stop-the-housing-bill

Let’s kill this bill!

Mapping contested space: A walk in downtown São Paulo

Downtown São Paulo, the center of the largest city in the Americas and heart of Brazil’s industrial expansion, is a contested space. For many decades the area has come to be seen as deteriorated, with hundreds of vacant buildings as a result of many of the older enterprises relocating out of the city center. Since the 1990s, housing movements (often known as “sem-teto”–“roofless”) have been asserting their right to decent housing in central areas, while other forces aim to “regenerate” the area in the typical manner that privileges property owners and the elite rather than those that are truly in need of housing and access to the city.

This is a map I made based on a transect walk in downtown São Paulo with a professor in urban planning who was kind enough to accompany me, pointing out various types of structures that offer clues to the story of the city center. On our walk, we saw previously vacant buildings occupied by housing movements, older historic buildings from when the center was previously an elite space, newer “cultural” projects aimed to attract investment to the area, and indeed new apartment buildings with less-than-affordable rent aimed to attract the city’s newer business elite. It is difficult to tell the whole story with a limited map and photos (many occupations and developments are not included here), especially when the situation is in constant flux. In mid-September, one occupied building I had seen on the Avenida São João was raided by military police, carrying out a judicial order to vacate the building. It is clear that the future of the city center remains undecided.

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O centro de São Paulo, o centro da maior cidade das Américas e o centro da expansão industrial do Brasil, é um espaço contestado. A área foi percebida como degenerada nas últimas décadas, e movimentos de moradia (ou “sem-teto”) afirmam o direito á moradia digna na área central. Entretanto, outros poderes tentem criar um modelo de regeneração que beneficia proprietários elites e não as pessoas que mesmo precisam de acesso á moradia e á cidade.

Aqui apresento um mapa baseado num passeio no centro de São Paulo que eu fiz com um professor de planeamento urbano, que me acompanhou para que eu pudesse melhor perceber a história do centro. No passeio vimos prédios anteriormente vazios agora ocupados pelos movimentos de sem-teto, edifícios historicamente para o elite, projetos ‘culturais’ com objectivo de atrair novos investimentos na área, e prédios com apartamentos novos construídos para o elite mais recente. É importante notar que todas as ocupações e desenvolvimentos não são incluídos, e a situação está sempre a mudar. Em setembro, a Polícia Militar invadiu uma ocupação na Avenida São João para executar a reintegração de posse.

29-IMG_3702Neste clipe de áudio, o professor Comaru da Universidade Federal ABC introduz a história da moradia no centro, desde o século 19 até os movimentos sem-teto atuais:

Continue reading “Mapping contested space: A walk in downtown São Paulo”

These photos were taken on a walk from Mile End to Hackney Wick, which is the small space of land that is part of the larger borough of Hackney but also falls into the “Olympic fringe area” adjacent to the Olympic park. It is rather divided from the rest of the borough of Hackney. The area’s industrial history shows itself among the new housing developments springing up and young artist types searching for cheaper rent and blank canvases.

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A walk through Haggerston in London’s Hackney

Haggerston is a neighborhood in the London borough of Hackney, which is classified as one of the most deprived areas of the UK. It is also a rapidly changing area as property values rise in conjunction with the “regeneration” of East London, especially since the 2012 Olympic Games were hosted very nearby. This walk was a preliminary mapping exercise that is part of a university project centering on East London.

The route of my walk:

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The London boroughs are huge and so this did not necessarily cover that much ground, but there were still many observations to be made. Most of my Hackney knowledge thus far is based around Hackney Road, which bustles with the sounds of cars, buses, the occasional siren. Veering away from there, however, I was surprised by just how much of Hackney seems to consist of housing. There are a large number of council estates (Britain’s form of social housing), but these have turned increasingly into privately-owned flats in recent years. Hackney was part of London’s urban sprawl in the 19th Century, home to a growing working class that fueled the city’s industry. Hints of the area’s history and current “regeneration” are quite evident when walking around, especially as estates and buildings with boarded-up windows, along with construction sites, are commonplace.

The route of my walk was random, but afterwards I gained further information about some of the structures that I saw from this document, published by the Hackney Society: http://www.hackneysociety.org/documents/Highlights_of_Haggerston1.pdf