Financialized Loss: The Hidden Frontier of Housing Financialization

Financial channels only redistribute existing wealth rather than generating new wealth. Consequently, financialized gains for one person inevitably mean losses for others. However, the prevailing literature on housing financialization often emphasizes how investors earn excessive profits while neglecting how ordinary households bear corresponding losses. This study seeks to initiate a conceptual and empirical exploration of financialized loss within housing consumption. This study first clarifies what constitutes these losses. It then employs a comparative case study of Japan and Canada to highlight how certain housing characteristics are linked to major financialized losses for housing consumers. The findings can guide the design of more targeted housing policies to reduce housing consumers’ losses and, thereby, improve housing affordability for ordinary households. Ultimately, this study lays the groundwork for a new research agenda focused on financialized loss in housing consumption, thereby providing a novel perspective for understanding housing financialization.