IrIsh capItalIsm & the unendIng housIng crIsIs
the coalition government in the south insist that its number one priority is housing, yet its solutions are more of the same landlord- and developer-led policies. leah whelan examines this probelm and its systemic nature, which is intertwined with capitalism itself.
While capitalism continues to view housing as a commodity rather than a human need, the global trend of workers losing out will only worsen. With more cities becoming unaffordable, people will be forced into untenable housing situations, contributing to job precarity, mental and physical health problems and poverty.
The housing crisis is not unique to Ireland; it is a global issue impacting working-class and poor people. It is currently estimated that 1.6 billion people are living without adequate shelter, and that one in seven people live in slums – with this due to rise to one in four by 2030.1 As people struggle to find secure and affordable accommodation in some of the major capitalist cities, financial landlords – more commonly known as vulture funds – continue to monopolise the housing market for profit. The global real estate market increased its size in 2020, growing faster than the previous year, with a massive $10.5 trillion invested between 2020-2021.2 While working-class people faced financial struggles through loss of jobs, hours and pay due to the Covid crisis, financial landlords took advantage of the crisis and made a killing. Ireland saw house price inflation jump to 8.6% in 2021 – the fastest level of growth seen in the market in almost three years. In 2020, €1.3 billion was invested into “income producing real estate”.3 At the same time, ordinary people struggling to pay mortgage and rent debts were still being served eviction notices,4 despite the government’s temporary ban on evictions.
The housing and homlessness crisis in Ireland has been headline news for over five years now and still it worsens as governments rely overwhelmingly on the private market to deliver housing. The current housing problem emerged from the Celtic Tiger, during which the average house price rose from €67,000 in 1991 to €331,000 by 2007, fuelled by speculation by banks and developers. The bubble burst with the 2008 financial crash. Developers, many saddled with ‘ghost estates’, stopped building. The state likewise withdrew from any form of house building for up to eight years. The recession created cheap assets and a space for those with capital to step in. Government parties gave the green light to financial landlords – with finance minister Michael Noonan infamously uttering, “vulture funds carry out a really good service” (add ref dáil record). These vulture funds, which viewed the economic prospects in Ireland as more favourable than southern Europe, have bought up land and thousands of housing units in Ireland.5 This is indicative of significant changes around the political economy of housing over the last decades, with more people now having to use the private rental sector (PRS), whether of their own accord or through
a permanent crisis
AuTuMN / WINTEr 2021 l SocialiSt alterNative l 13
