New Book Diagnoses Housing as Speculative Asset Trap

A new book by Jaime Palomera diagnoses the housing crisis as a structural shift, where homes have become speculative assets rather than basic rights, trapping younger generations in financial precarity.

In *El segrest de l’habitatge* (The Seizure of Housing), Palomera argues that the market operates like a rigged Monopoly game. A wealthy minority accumulates properties under rules that favor large investors and funds, while most people struggle to secure affordable shelter. Ownership, particularly of multiple units, now yields higher returns than many other investments, driving relentless price spirals that benefit rentiers and entrench inequality.

The author dismantles common myths, rejecting ideas that the issue stems solely from individual failings or simple supply shortages. Instead, he points to housing's evolution into a financial instrument, amplified by misguided regulations. Tax breaks for small owners and broad incentives to private developers, he contends, fail to counter the dominance of big holders, perpetuating speculation rather than curbing it.

Palomera highlights successful alternatives abroad. Vienna's extensive public housing stock and Singapore's policies prioritizing affordability show how governments can limit speculative hoarding and reclaim housing as a public good.

The book challenges societies to confront these root causes through bold reforms, from overhauling taxation to expanding public and communal roles in housing provision. Without such changes, Palomera warns, the system will continue excluding more people, prioritizing profit over collective well-being.