Regenerative Housing: Transitioning from Private Equity Dominance to Community Ownership
As the U.S. housing market remains inaccessible to many, a growing movement advocates for a radical shift in how land and housing are viewed—not merely as assets to build wealth, but as foundational elements of strong, stable communities. This movement calls for a departure from the speculative real estate market, advocating instead for investments in community-controlled housing initiatives that prioritize social and economic justice.
In particular, Black, Indigenous, and people of color (BIPOC) communities have been disproportionately affected by private equity firms prioritizing profit over people, often resulting in tenant displacement. Organizations such as Right to the City are spearheading efforts to combat this trend, developing grassroots strategies to resist gentrification and foster more equitable and sustainable neighborhoods.
A Personal Perspective on Housing Insecurity
The impact of predatory investment practices is not just theoretical. In the fourth quarter of 2023, investor groups purchased 18.5% of all homes, including 26.1% of low-cost homes, exacerbating housing insecurity for many. This issue hits home for those who experienced the fallout from the 2008 financial crisis, including the author, whose family was forced into foreclosure despite years of effort to achieve homeownership.
The financial crisis of 2008 wiped out nearly 10 million American homes, disproportionately affecting communities of color. Families that were lured into subprime loans found themselves unable to keep up with ballooning payments, leading to widespread foreclosures and a significant setback in the generational wealth that BIPOC communities had painstakingly built over decades.
The Broader Context of the Housing Crisis
Today, many BIPOC families continue to feel the effects of the Great Recession, with recovery still out of reach. Meanwhile, large investment groups dominate the starter home market, further entrenching the commodification of housing. The notion that real estate speculation is a sound business practice is increasingly questioned, as it often leads to instability for ordinary families while enriching a select few.
The current housing system’s flaws lie in treating land and homes as commodities rather than as essential resources that sustain communities. Venture capital and real estate firms frequently target under-resourced communities, purchasing properties at low prices, making minimal improvements, and selling them at inflated rates. This pattern has been observed in places like Koreatown, Los Angeles, where investment firms like Jamison Services have turned once-affordable housing into luxury apartments, displacing long-time residents in the process.
Building a Solidarity Economy through Regenerative Housing
The traditional pathways to wealth, such as homeownership, are increasingly inaccessible to lower- and middle-income families. Many are just one paycheck away from housing insecurity. This precarious situation calls for a reevaluation of housing as a human right and a shift away from speculative practices.
A growing movement across the U.S. is advocating for regenerative housing models that prioritize community control and long-term stability. These initiatives focus on removing land from the speculative market and reinvesting capital into community-stewarded projects. Right to the City, for example, is involved with Justice Funders’ Integrated Capital Fund, which supports grassroots efforts to secure land for community use, ensuring affordability and preventing displacement.
From Boston to Los Angeles, local groups are employing revolving loan funds to acquire and preserve affordable housing. These funds are not just about taking properties off the market; they also promote regenerative housing principles that prioritize sustainability, health, and community cohesion.
Integrated Capital Strategies in Practice
Across the U.S., community groups are using innovative capital strategies to reclaim land and housing from the speculative market. One notable example is the Montevista mobile home park in Denver, Colorado. In 2022 and 2023, residents of this predominantly Latinx community raised $11.5 million to purchase the land under their homes and transition the park into a community-controlled cooperative. This effort, supported by organizations like 9to5 Colorado and Justice for the People Legal Center, allowed residents to take control of their housing future, ensuring long-term stability in a rapidly gentrifying neighborhood.
The success of such initiatives demonstrates the potential for communities to secure autonomy over their homes and create lasting, self-governed spaces. As these projects expand, they offer a blueprint for a housing system that values people over profits.
Reimagining Housing for a Sustainable Future
The path toward regenerative housing solutions requires significant investment in capital, infrastructure, and time. However, the principles underlying these initiatives—community control, affordability, and inclusivity—have deep roots in history and resonate strongly in today’s context of widespread housing insecurity.
As public disillusionment with traditional housing models grows, there is a pressing need to support the infrastructure that sustains these regenerative approaches. From funding campaigns to remove land from the speculative market to providing technical assistance for resident-stewards, these efforts are essential for creating the thriving, safe communities envisioned by housing advocates.
Ultimately, the vision is simple: autonomous, resilient neighborhoods where communal networks are strong and self-sustaining. These initiatives are not just about housing; they represent a broader movement toward rebuilding relationships with each other and with the environment. In this way, regenerative housing is a vital tool in the pursuit of transformative justice and a more equitable society.