Housing Becomes a Growing Source of Wealth — and Inequality Across the World

Housing is no longer simply a place to live. Across major economies, property has increasingly become one of the most important stores of wealth, attracting investors, households and financial institutions. But the rising value of real estate is creating a sharp divide between people who already own property and those struggling to enter the housing market.

The scale of the global property market illustrates why housing has become so important to the wider economy. At the beginning of 2025, the worldwide value of real estate, including homes, commercial buildings and agricultural land, stood at about $393 trillion, according to Savills. Residential property accounted for approximately $286.9 trillion of that total.

The enormous value of housing has also changed the way the sector is viewed. Property is increasingly treated as an investment capable of producing rental income, protecting savings from inflation and generating capital gains. This shift has helped turn homes into a major destination for global capital.

From homes to investment assets

The transformation accelerated after the global financial crisis. Between 2009 and 2022, exceptionally low interest rates and abundant liquidity encouraged investors to search for assets capable of delivering relatively stable returns. Real estate became one of the major beneficiaries.

Investment funds, family offices, REITs, banks and individual buyers all contributed to demand. The combination of cheap borrowing and the search for reliable returns helped strengthen the connection between housing and financial markets.

The pandemic and the economic uncertainty that followed did not reverse the trend. Inflation, geopolitical tensions and volatility in financial markets further increased interest in tangible assets such as property.

As a result, housing increasingly competes with traditional investment choices such as bonds and equities. For investors concerned about inflation or large swings in financial markets, property can appear attractive because it is a physical asset that can generate rental income while potentially increasing in value.

A widening gap between owners and renters

The consequences are particularly visible in countries where housing costs have risen faster than household incomes.

Spain provides one example. The country has experienced significant pressure in its rental market, with a substantial number of households spending more than 40% of their disposable income on housing costs. Oxfam Intermón has also warned that housing expenses are contributing to financial hardship for a large part of the population.

At the same time, property wealth is heavily concentrated. Data from the Bank of Spain cited in the report show that Spanish households collectively hold more than €7.4 trillion in real estate wealth. However, the richest 10% own roughly one-third of that wealth, while the bottom half account for only about 15%.

This creates an important generational and economic divide. Existing homeowners can benefit from rising property prices, while people without homes face increasingly expensive entry costs. Those who inherit property or receive financial assistance from their families may also have a major advantage over households without such support.

Supply shortages add to the pressure

Investment demand is only one part of the problem. In many developed economies, construction has not kept pace with population growth, creating shortages in housing supply.

When demand rises while the number of available homes remains limited, prices and rents can come under additional pressure. The situation can become even more difficult when properties are purchased primarily for investment rather than immediate occupation.

Spain's housing market also differs from countries such as Germany and France because institutional investors own a comparatively smaller portion of rental housing. Around 92% of Spain's rental housing stock is held by individual owners, while large landlords and investment funds account for only around 10%.

Nevertheless, the broader financialization of housing has become an important part of the debate over affordability.

Governments face a difficult policy choice

The growing role of property as an investment has forced governments to balance two competing objectives: protecting housing as a basic social need while allowing real estate to function as an investment market.

Several governments have introduced measures aimed at limiting speculative demand. Spain ended its so-called golden visa program in April 2025 and Catalonia expanded rent-control measures in areas classified as stressed housing markets.

In the United States, lawmakers approved a housing bill in March 2026 that would restrict large institutional investors from purchasing additional single-family homes once they already own at least 350 properties.

The debate is unlikely to disappear soon. Housing remains a major source of household wealth, but its rising value does not benefit everyone equally.

For homeowners with significant property holdings, increasing prices can strengthen financial security and create wealth for future generations. For renters and younger households trying to buy their first home, the same price increases can make ownership increasingly difficult.

The central challenge for policymakers is therefore not simply increasing the value of the housing market. It is ensuring that property remains accessible as a place to live while preventing wealth accumulation through housing from becoming an even stronger driver of social and economic inequality.