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Document Type

Article

Abstract

The mortgage bubble that burst in 2007 created an economic environment where many housing properties were transferred from individual households to investors hoping for quick profits with minimal investment. These properties were traded among investors, businesses, and lenders; they acquired a market identity as financial assets; and many of these properties were acquired by “out-of-area” interests. This study examines properties purchased by out-of-area interests that were sold in 2009 within the City of Cincinnati in an attempt to identify the spatial implications of the financialization of this housing stock. The analysis finds that many of these properties were sold multiple times, clustered in economically distressed neighborhoods, and associated with urban distress and decline. This study also suggests that research focusing on the causes and consequences of the financialization of housing stock should be considered when devising effective policy options.

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