IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v53y2016i7p1465-1485.html
   My bibliography  Save this article

Financial markets, developers and the geographies of housing in Brazil: A supply-side account

Author

Listed:
  • Daniel Sanfelici
  • Ludovic Halbert

Abstract

Financialisation and housing are predominantly associated to mortgages for homeownership and securitisation techniques. This paper looks at how financial markets influence the development industry, its business strategies, and the nature and location of its products. Adopting a supply-side account, the paper inquires into the rising role of financial markets as a source of funding for a consolidating development industry and its influence on the geography of housing in Brazilian cities. It develops the concept of resonance by combining two yet unrelated strands of literature on the study of financial markets (cultural economy and conventionalist economics). Narratives co-authored by the stock market community and development firms management over each individual firm, and the discursively linked strategic moves of developers, are shown to resonate, at the meso-level of the industry, into shared social representations (or conventions) on how to best assess and interpret the value of development firms. Analysing the wave of Initial Public Offerings occurring in the mid 2000s, the paper highlights that narratives of quick capital gains associated with the removal of the land banking bottleneck faced by developers supported a convention giving priority to the growth in total output, and contributed to the observed changes in the forms, scales and locations of housing projects in Brazilian cities. As discrepancies between the promises of returns for shareholders and actual financial results emerged, the growth convention unravelled, making way for other narratives and strategic moves to resonate anew and possibly change again the geographies of housing.

Suggested Citation

  • Daniel Sanfelici & Ludovic Halbert, 2016. "Financial markets, developers and the geographies of housing in Brazil: A supply-side account," Urban Studies, Urban Studies Journal Limited, vol. 53(7), pages 1465-1485, May.
  • Handle: RePEc:sae:urbstu:v:53:y:2016:i:7:p:1465-1485
    DOI: 10.1177/0042098015590981
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098015590981
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0042098015590981?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Poon, Martha, 2009. "From new deal institutions to capital markets: Commercial consumer risk scores and the making of subprime mortgage finance," Accounting, Organizations and Society, Elsevier, vol. 34(5), pages 654-674, July.
    2. Ray Forrest, 2015. "The ongoing financialisation of home ownership – new times, new contexts," International Journal of Housing Policy, Taylor & Francis Journals, vol. 15(1), pages 1-5, January.
    3. Ludovic Halbert & Hortense Rouanet, 2014. "Filtering Risk Away: Global Finance Capital, Transcalar Territorial Networks and the (Un)Making of City-Regions: An Analysis of Business Property Development in Bangalore, India," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 471-484, March.
    4. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Post-Print halshs-00359712, HAL.
    5. Raquel Rolnik, 2013. "Late Neoliberalism: The Financialization of Homeownership and Housing Rights," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(3), pages 1058-1066, May.
    6. Thierry Theurillat & Olivier Crevoisier, 2014. "Sustainability and the Anchoring of Capital: Negotiations Surrounding Two Major Urban Projects in Switzerland," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 501-515, March.
    7. Louise David & Ludovic Halbert, 2014. "Finance Capital, Actor-Network Theory and the Struggle Over Calculative Agencies in the Business Property Markets of Mexico City Metropolitan Region," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 516-529, March.
    8. Llerena Guiu Searle, 2014. "Conflict and Commensuration: Contested Market Making in India's Private Real Estate Development Sector," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(1), pages 60-78, January.
    9. Ludovic Halbert & John Henneberry & Fotis Mouzakis, 2014. "The Financialization of Business Property and What It Means for Cities and Regions," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 547-550, March.
    10. Ray Forrest, 2015. "The ongoing financialisation of home ownership – new times, new contexts," European Journal of Housing Policy, Taylor and Francis Journals, vol. 15(1), pages 1-5, January.
    11. A. Guironnet & K. Attuyer & L. Halbert, 2016. "Building cities on financial assets: The financialisation of property markets and its implications for city governments in the Paris city-region," Post-Print halshs-01258810, HAL.
    12. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," Working Papers halshs-00359712, HAL.
    13. Martha Poon, 2009. "From New Deal institutions to capital markets: commercial consumer risk scores and the making of subprime mortgage finance," CSI Working Papers Series 014, Centre de Sociologie de l'Innovation (CSI), Mines ParisTech.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frances Brill, 2020. "Complexity and coordination in London’s Silvertown Quays: How real estate developers (re)centred themselves in the planning process," Environment and Planning A, , vol. 52(2), pages 362-382, March.
    2. Hortense Rouanet & Ludovic Halbert, 2016. "Leveraging finance capital: Urban change and self-empowerment of real estate developers in India," Urban Studies, Urban Studies Journal Limited, vol. 53(7), pages 1401-1423, May.
    3. Ryan Bubb & Alex Kaufman, 2011. "Securitization and moral hazard: evidence from credit score cutoff rules," Public Policy Discussion Paper 11-6, Federal Reserve Bank of Boston.
    4. Savannah Cox, 2022. "Inscriptions of resilience: Bond ratings and the government of climate risk in Greater Miami, Florida," Environment and Planning A, , vol. 54(2), pages 295-310, March.
    5. Antoine Guironnet, 2019. "Cities on the global real estate marketplace: urban development policy and the circulation of financial standards in two French localities," Post-Print halshs-02297204, HAL.
    6. Bernardo Bátiz-Lazo, 2017. "Between Novelty and Fashion: Risk Management and the Adoption of Computers in Retail Banking," Palgrave Studies in the History of Finance, in: Korinna Schönhärl (ed.), Decision Taking, Confidence and Risk Management in Banks from Early Modernity to the 20th Century, pages 189-207, Palgrave Macmillan.
    7. Kiviat, Barbara, 2019. "Credit Scoring in the United States," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 21(1), pages 33-42.
    8. Eglė Jakučionytė & Swapnil Singh, 2023. "Emergence of subprime lending in minority neighborhoods," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(6), pages 1547-1583, November.
    9. Alaimo, Cristina & Kallinikos, Jannis, 2022. "Organizations decentered: data objects, technology and knowledge," LSE Research Online Documents on Economics 112470, London School of Economics and Political Science, LSE Library.
    10. repec:spo:wpmain:info:hdl:2441/6cbt691h0h8o9q5rf0apko0pda is not listed on IDEAS
    11. Scott, Susan V., 2010. "Understanding the characteristics of techno-innovation in an era of self-regulated financial services," LSE Research Online Documents on Economics 37867, London School of Economics and Political Science, LSE Library.
    12. Godechot, Olivier, 2015. "Financialization is marketization! A study on the respective impact of various dimensions of financialization on the increase in global inequality," MaxPo Discussion Paper Series 15/3, Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo).
    13. Tordjman, Hélène, 2011. "La crise contemporaine, une crise de la modernité technique," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 10.
    14. Olivier Godechot, 2015. "Financialization Is Marketization!," SciencePo Working papers Main hal-03459520, HAL.
    15. Lei Ding & Jackelyn Hwang, 2016. "The Consequences of Gentrification: A Focus on Residents’ Financial Health in Philadelphia," Working Papers 16-22, Federal Reserve Bank of Philadelphia.
    16. Bill Maurer, 2012. "Finance 2.0," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 11, Edward Elgar Publishing.
    17. McFall, Liz, 2014. "Devising Consumption: cultural economies of insurance, credit and spending," OSF Preprints at2nv, Center for Open Science.
    18. Cochoy, Franck & Dubuisson-Quellier, Sophie, 2013. "The sociology of market work," economic sociology. perspectives and conversations, Max Planck Institute for the Study of Societies, vol. 15(1), pages 4-11.
    19. Martinez, Daniel E. & Pflueger, Dane & Palermo, Tommaso, 2022. "Accounting and the territorialization of markets: A field study of the Colorado cannabis market," Accounting, Organizations and Society, Elsevier, vol. 102(C).
    20. Kornberger, Martin & Pflueger, Dane & Mouritsen, Jan, 2017. "Evaluative infrastructures: Accounting for platform organization," Accounting, Organizations and Society, Elsevier, vol. 60(C), pages 79-95.
    21. Lipartito, Kenneth, 2011. "The narrative and the algorithm: Genres of credit reporting from the nineteenth century to today," MPRA Paper 28142, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:53:y:2016:i:7:p:1465-1485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.