Exacerbating Economic Inequalities
As the housing crisis deepens, the growing presence of institutional investors in the rental real estate market – a phenomenon often referred to as the financialization of housing – is coming under scrutiny.
In 2021, we launched our research on “Investors for Affordable Cities,” bringing together investors to address the reputational and operational risks of housing investments associated with evictions, tenant displacement or driving up local rent.
Sustainable Development Goals
Sustainable Cities
Our approach to affordable housing is closely aligned with targets of the United Nations Sustainable Development Goal (SDG) 11, “Sustainable Cities and Communities,” which calls to:
Ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums. (Target 11.1)
United Nations Human Rights
Housing as a Human Right
According to the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights, adequate affordable housing, and the improvement of living conditions, is recognized as a component of the right to an adequate standard of living. (Article 11)
How do we engage on housing affordability?
Fund Governance
At the fund governance level, investors can embed housing affordability into responsible investment policies to provide a solid framework for investment decision-making.
Asset Allocation
At the asset allocation level, investors can designate a portion of their funds to affordable housing– either directly investing in assets or allocating to affordable housing funds.
Stewardship
At the stewardship level, investors can incorporate housing affordability into their asset manager selection and monitoring criteria, and into their engagement with portfolio companies such as Real Estate Investment Trusts (REITs).
Policy
At the policy level, institutional investors can add an important voice to discussions in support of meaningful measures to advance housing affordability in Canada.
Webinar Recording
Investors for Afforable Cities
This webinar brought together investors to learn about how the financialization of housing is unfolding in Canadian cities. Led by a panel of experts, the conversation explored why housing affordability is an issue for investors, and what investors can do to begin addressing concerns in their portfolios.
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