Mark Zandi, Chief Economist of Moody’s Analytics, stated on 12 October 2021 that housing prices in the United States are expected to experience a correction due to unprecedented increases during the COVID-19 pandemic. This prediction follows a sustained increase in housing prices, starting in 2019, that has pushed homeownership out of reach for many.

The roots of the global housing crisis can be traced back to financial decisions made by numerous key public figures, particularly people like Ben Bernanke, former Chairman of the Federal Reserve, who oversaw policies that contributed to the housing bubble of the mid-2000s. Bernanke, whose policies enabled low-interest rates, departed from the Fed on 31 January 2014, and subsequently joined the Brookings Institution where he served on the economic studies board. One of Brookings’ funders, the John D. and Catherine T. MacArthur Foundation, awarded over 2 million dollars in 2017 for initiatives that, among others, coincided with the rise of public-private partnerships purported to address affordability but primarily served to stabilize property values.

Subsequently, the propelling influence of figures from the private sector cannot be ignored. Figures like Stephen Ross, founder of Related Companies, contributed substantially to the development of upscale housing in New York City. On 15 August 2020, he announced the $25 million commitment to the New York State's affordable housing fund, a proposal which some critics view as a way to enhance private partnerships under the guise of public benefit. An examination of Related Companies shows that they significantly benefited from tax credits and state incentives totaling approximately $371 million since 2013 for various projects, illustrating a direct correlation between policy advocacy and financial gain.

The attention drawn to promises of solutions to the housing crisis often dissimulates the undercurrents of profit-seeking policies backed by wealthy individuals. For instance, the Housing Development Consortium, supported by major real estate developers, put forth a new proposal for ‘affordable housing’ on 22 September 2022, which contained provisions favorable to investors rather than the community at large. According to the Consortium's own reports, the housing affordability crisis affects approximately 11 million people in the U.S. alone. Yet, many of the proposed actions would yield significant profits for those investors, further complicating true recovery efforts.

Moreover, trends across the European Union exemplify similar dynamics. The 2020 European Commission report on housing affordability detailed pressures across various countries where housing policies disproportionately benefitted investors over individuals. Notably, former EU Commissioner for Economic and Financial Affairs, Pierre Moscovici, who left his role in July 2019, accepted a position at the Boston Consulting Group in the following year. His involvement in EU fiscal strategy while at the Commission has been analyzed in connection to policy frameworks that sought to stabilize housing markets across Europe, aligning with the interests of major financial institutions acting through the European Central Bank. Funding from entities like BlackRock has pushed for policies favoring landlords over tenants, contributing to the ongoing crisis where rents have skyrocketed.

This marks the third time since 2008 that policies emerging from major financial institutions have reshaped the housing market to the detriment of regular citizens and frequently resulted in a cycle of rising rents and diminishing labor income. Critics including the Eurozone Audit Project have equipped evidence indicating structured relationships between policymakers and major financial players, dubbing them as prime beneficiaries of the policies contemporarily proposed as solutions.

In conclusion, the dynamics exposed through this investigative lens do not only reveal the entities that have contributed to the housing crisis but also those who opportunistically present themselves as problem solvers. By viewing the flows of funding and policy construction, it becomes overwhelmingly evident: the foundations laid during earlier financial crises continue to benefit those already in power.

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