5. Future Innovations in Housing Finance

In this chapter, we examine the situation of housing finance in the wake of the mortgage meltdown and global credit crisis, the structural shifts in demand that will drive housing finance innovation in the future, and current supply constraints and attempts to overcome them.

The means and methods of financial innovation for housing are similar for both developed and emerging markets:

• Diversifying sources of capital (debt and equity)

• Structuring financial products that will promote private capital investment to return to residential real estate construction, maintenance, and sustainable improvement

• Diversifying types of housing products (single/multiple family)

• Higher-density, sustainable buildings ...

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