The postwar (re)construction caused an unprecedented boom in new construction. This was enabled by numerous innovations in building technologies, economic models, partnerships, and standardization. It was a leap forward in the fossil fuel era, and the boom answered the needs of quickly urbanizing and industrializing societies. It was sped up by the postwar generations joining the workforce in new professions. The leap was an astonishing example of modernity as efficiency and shared direction. It wasn’t limited to just the construction sector. It highlighted the interplay between construction and other realms of society: finance, different levels of government, new policy areas, and other industries became an integral part of buildings, and buildings influenced how these realms operate.
While much has changed since the heyday of construction, the ethos has remained practically the same. Construction is geared towards efficient “home building.” It’s been extremely difficult to integrate other directions and values into how we create the material world around us.
The financialization of the built environment is a double-edged sword. Treating buildings as financial assets has created huge incentives for investments. It’s enabled rapid development to meet the changing needs of growing populations. While it has served us well, this dynamic has become increasingly extreme, and the incentives are increasingly counter-effective. Previously, financialization served us by directing resources to assets and functions humans needed. Today, however, it’s often in conflict with the same needs it was meant to serve.
Financial incentives tend to overpower human, planetary, and societal needs. They limit the actions of the stakeholders acting in good faith. We’ve become trapped in a system where new buildings are the only way for the construction industry to survive. Where razor-thin profit margins dictate the quality, the value of our natural world is erased from the balance sheet, and the decisions impacting the everyday experience of everyone rest solely in the hands of a few professionals.
Our current system has evolved to meet the needs of modernity, providing us with comfort and security. However, the challenges of today show that it’s no longer fit for purpose.