In major urban centers worldwide, from bustling Vancouver and Toronto to iconic metropolises across continents, the struggle for affordable housing has reached a critical juncture. This isn’t merely a localized issue; it’s a pressing global crisis that impacts millions, challenging the very fabric of our cities. This complex problem is vividly brought to light in PUSH, an insightful and award-winning documentary by Swedish director Fredrik Gertten, which premiered to critical acclaim at the Hot Docs Canadian International Documentary Film Festival.
The film meticulously traces the journey of Ottawa-based lawyer Leilani Farha, who, in her pivotal role as the UN Special Rapporteur on the Right to Housing, travels extensively, investigating cities where rental costs have skyrocketed, often increasing by three times or more compared to income growth. Her quest uncovers a pattern of systemic issues that have transformed housing from a fundamental right into a volatile commodity.
The Unseen Forces: Financialization and the Erosion of Housing Rights
PUSH highlights compelling individual stories that underscore the human impact of this crisis. In Harlem, New York, the plight of a resident spending a staggering 90 percent of his income on rent becomes a stark example, facing a projected increase to $3,600 a month following an acquisition by a private equity fund. The film also transports viewers to London, where survivors of the devastating Grenfell Tower fire grapple with inadequate housing solutions, and to Toronto’s Parkdale neighbourhood, a community driven to rent strikes in a desperate fight against displacement.
A particularly alarming phenomenon, identified and meticulously documented in the film, emerged in the aftermath of the 2008 global financial crisis. This period marked a significant shift as private equity firms and asset management firms began aggressively acquiring vast portfolios of new buildings and existing housing stock. Their strategy often involved the eviction of long-term tenants or dramatic increases in rent, fundamentally altering urban demographics and exacerbating affordability challenges.
Saskia Sassen, an eminent professor of sociology at Columbia University, aptly describes these emerging landlords as “the monster that nobody can see, that nobody really understands, whose language is incomprehensible.” This powerful metaphor captures the opaque, often dehumanizing nature of large-scale corporate ownership in the housing market, where financial metrics often supersede human needs.
Adding to this crucial perspective, Nobel Laureate Joseph Stiglitz critically examines how private equity firms have ascended to become some of the world’s largest landlords. He posits a disturbing paradigm shift: “You can make more money not by making a better product and lowering the cost of production, which is the standard economic analysis, but by… looking for people you can take advantage of. They’re not creating wealth; they’re actually just taking wealth.” This perspective frames the financialization of housing not as an act of economic development, but as a systematic extraction of wealth, primarily from vulnerable populations.
At its core, the documentary prompts a profound societal question: who are our cities truly for? As director Gertten remarked during a post-screening Q&A, “It’s increasingly for those with wealth. We’re losing the diversity of cities.” This loss of diversity signifies a deeper societal problem, where vibrant, mixed-income communities are homogenized, pushing essential workers, artists, and diverse families out of urban centers.
To delve deeper into these critical issues, we recently spoke with Leilani Farha, the central figure of the documentary, whose mandate as Special Rapporteur extended until 2020, during which she visited nearly a dozen countries, each visit reinforcing the urgency of the global housing crisis.
Leilani Farha, UN Special Rapporteur on the Right to Housing, advocates for systemic change.
An Interview with Leilani Farha: Championing the Right to Housing
Our conversation with Leilani Farha illuminated key aspects of her work and the complex challenges facing global housing markets.
Defining Adequate Housing: More Than Just Four Walls
REM: What exactly constitutes adequate housing under international law?
Farha: Under international law, adequate housing is precisely defined by several key principles that extend far beyond simply having a roof over one’s head. Fundamentally, it includes affordability, which is assessed against household income – meaning housing costs should not compromise a household’s ability to meet other basic needs. Another crucial element is security of tenure. This means individuals should not live in constant fear of eviction and should certainly not be subjected to unnecessary or arbitrary evictions. Above all, dignity is the overarching principle. Adequate housing is about ensuring a living space that allows for privacy, safety, and human dignity, free from harassment and insecurity. It’s about creating an environment where people can thrive, not just survive.
Global Insights: The Pervasive Nature of the Crisis
REM: From your extensive travels, what insights have you gleaned about the housing crisis?
Farha: There is absolutely no doubt today, and I hardly need to state it, that we are facing a housing crisis on a global scale. My travels have taken me to countless cities, and without exception, affordability consistently emerges as a critical issue. Furthermore, the adequacy of housing and the pervasive challenge of homelessness are significant concerns everywhere I go. If you examine housing markets around the world, you invariably observe the same troubling trend highlighted in PUSH: rapidly rising housing and rental costs juxtaposed with static or stagnant wages. It’s this widening gap that particularly worries me. In every city, I witness the devastating effects: widespread homelessness, shelters operating beyond capacity, and the proliferation of tent encampments. These are unmistakable indicators of a profound and urgent crisis that demands immediate attention.
Understanding the Root Causes: The Financialization Enigma
REM: Can you elaborate on the fundamental causes of this widespread problem?
Farha: While there are multiple contributing factors, I have identified the financialization of housing as a major, overarching contributor. This isn’t the sole cause, but it’s a dominant force. Financialization has been enabled by several systemic issues, such as the deregulation of our economies and financial sectors, which has allowed financial actors unprecedented freedom to engage in speculative housing investments. Concurrently, governments have increasingly disengaged from their traditional role in providing housing and social protections for their citizens. So, on one hand, we see policy decisions that enable and prop up speculative investment in housing through deregulation, favorable legislation, permissive policies, and advantageous tax laws. On the other hand, these same governments are simultaneously withdrawing from social housing initiatives and dismantling protections for tenants. This dangerous dual trajectory creates the perfect storm for what we are witnessing now: a global housing crisis driven by a speculative market rather than human need.
The Business Model: Private Equity and Real Estate Acquisition
REM: You’ve spoken about a new phenomenon where asset management firms and private equity firms, like Blackstone, are aggressively buying up real estate. Can you elaborate on the effect this has had on tenants, particularly with examples like Blackstone’s recent acquisitions in Toronto?
Farha: Blackstone is indeed a colossus in this space, recognized as the largest residential real estate private equity firm globally. However, it’s crucial to understand that they are far from being the only players, although their scale makes them relatively traceable. There are numerous other large, multi-billion-dollar, multi-national asset management firms operating in a similar vein. For instance, I’ve encountered firms like Timbercreek in Canada, and similar entities are active across Sweden, Germany, and many other nations.
What’s truly remarkable, and concerning, is that they all adhere to fundamentally the same business model. This model involves identifying properties they deem undervalued, acquiring them, and then systematically extracting greater profits. The primary mechanism for achieving this increased profitability is, invariably, by raising rents. This can be executed through various means: sometimes, extensive renovations are undertaken, which then provide a legal justification for significant rent increases under existing regulations. In other instances, it doesn’t even involve substantial renovation; it’s a straightforward purchase followed by an immediate and often drastic hike in rent.
As I comprehend it, the income generated from the property, coupled with the increasing appraised value of the property itself, serves as collateral to secure further loans. This allows these firms to leverage even more money from their existing real estate assets. This additional capital, in turn, fuels more purchases and acquisitions, perpetuating a relentless cycle of expansion and profit extraction. This model is not designed to provide stable, affordable housing but to maximize returns for investors.
REM: And you’re seeing this predatory model unfold in numerous cities globally?
Farha: Absolutely. This isn’t an isolated incident or a phenomenon confined to one region. It’s happening with alarming consistency across a wide geographical spectrum: in Copenhagen, throughout Germany, Sweden, Spain, Ireland, Canada, and extensively across the United States. It’s a truly global pattern of financialized housing market behavior.
The Shift: Mobilizing a Global Movement for Housing Rights
REM: You’re actively involved in an initiative called “The Shift.” Could you tell us more about its mission and impact?
Farha: “The Shift” originated from my realization that, despite the privileges and open doors my role as Special Rapporteur afforded me, achieving the necessary systemic change entirely on my own would be an absolutely phenomenal and likely impossible task. The forces driving the housing crisis are incredibly powerful, wielding immense influence over governments and policy. I recognized that what was truly needed was a broad, global movement involving diverse stakeholders—all united by the belief that housing is a human right, and that the current housing crisis demands an urgent, concerted response. Consequently, I partnered with influential organizations such as United Cities and Local Governments, as well as the Office of the High Commissioner for Human Rights. Together, we embarked on a mission to demonstrate that there is significant activity and growing traction for the concept of housing as a human right.
What has genuinely surprised me is the incredible momentum we’ve gained. Cities, in particular, have come on board in substantial numbers and have really taken the lead in this movement. A huge proportion of these urban centers have formally committed to implementing the right to housing at the local level. This doesn’t instantly transform them into “human rights stars,” but it signifies a profound acknowledgment that what is happening in their housing markets is hugely problematic. They are actively seeking to address these challenges using human rights values and principles as their guiding framework. This burgeoning network of committed cities includes major global players such as Barcelona, Mexico City, Amsterdam, Seoul, Geneva, London, New York, and Paris, demonstrating a collective will to reclaim housing as a human right for all their residents.