In today’s volatile real estate market, individual homebuyers often feel powerless against the complex systems governing mortgage rates and lending practices. The current landscape presents a stark choice: either accept personal responsibility for navigating an opaque financial system alone, or attempt to challenge the entire structure of mortgage finance, which can seem impenetrable and beyond individual influence. This either/or dilemma leaves many aspiring homeowners feeling stuck, much like the philosophical framework described in the recent book that examines how individuals can create meaningful social change. The mortgage industry’s complex web of factors—including interest rate fluctuations, credit scoring algorithms, and underwriting standards—often operates as an invisible structure that most consumers navigate passively, unaware of how their collective actions might influence these systems.
The concept of “self-responsibilization” has deeply penetrated the mortgage and real estate sectors, where financial institutions and policy makers increasingly shift the burden of homeownership success entirely onto individual consumers. This approach suggests that if you can’t secure favorable mortgage terms or afford a home in your desired neighborhood, the problem lies solely with your personal financial choices rather than systemic issues like wage stagnation, restrictive zoning laws, or predatory lending practices. This individualistic narrative conveniently overlooks how structural factors—such as the 2008 financial crisis caused by institutional risk-taking, or the growing concentration of wealth among a small number of investors—have fundamentally reshaped real estate markets. When borrowers are told to simply “work harder, save more,” they’re being presented with a solution that addresses symptoms rather than causes of housing affordability crises.
Historically, the mortgage industry has undergone significant transformations through collective action that challenged existing systems. The community development movement of the 1960s and 1970s, for example, emerged when grassroots organizers recognized that traditional banks were systematically underserving minority neighborhoods. These activists didn’t simply tell individuals to improve their credit scores; they challenged the entire lending structure by creating community development financial institutions (CDFIs) and advocating for fair lending legislation. This movement demonstrates how “becoming somewhat less of an individual”—as environmental activist Bill McKibben suggested—can lead to systemic change. The Fair Housing Act and the Community Reinvestment Act, both products of collective advocacy, fundamentally altered how mortgage finance operates in America, proving that “power concedes nothing without a demand” when that demand is organized and persistent.
Today’s mortgage market presents new opportunities for collective action that could reshape real estate finance for the better. The rise of fintech companies and online lending platforms has created alternative pathways to homeownership that challenge traditional banking monopolies. These disruptors don’t simply offer individuals different personal choices—they fundamentally change the structure of mortgage delivery, often using technology to reduce costs and increase transparency. However, the most significant potential for change lies in organized buyer collectives that pool resources to negotiate better terms, advocate for policy changes, or even create alternative financing models. When homeowners organize around shared interests—whether neighborhood improvement, affordable housing development, or fair lending practices—they transform from passive consumers into active system-changers who can influence everything from local zoning laws to federal housing policy.
The current era of historically high mortgage rates has created a perfect storm for collective action in real estate finance. With rates hovering near two-decade highs, individual buyers face unprecedented affordability challenges that cannot be solved through personal financial discipline alone. This market dynamic has already sparked grassroots organizing among first-time homebuyers who are advocating for policy reforms, exploring alternative ownership structures like cooperative housing, and creating peer-to-peer lending networks. These initiatives represent a fundamental shift from accepting individual responsibility for market conditions to actively working together to create systems that make better choices possible for everyone. Just as historical change-makers like Mothers Against Drunk Driving transformed public safety through collective advocacy, today’s housing activists are building movements that could reshape how we think about mortgage finance and homeownership in America.
One promising avenue for collective change in mortgage finance is the growing movement around community land trusts (CLTs) and cooperative housing models. These innovative approaches challenge traditional notions of individual property ownership by creating collectively governed housing structures that permanently keep housing affordable. Unlike conventional real estate markets where individual speculation drives prices upward, CLTs separate the ownership of buildings from the ownership of land, with the land held in trust by the community in perpetuity. This structural change prevents the displacement of long-term residents and creates a more stable housing market that benefits everyone. These models demonstrate how working together to build alternative systems can help people make better housing choices, regardless of market fluctuations or individual financial circumstances.
The concept of “social tipping points” offers valuable insights for understanding how change might come to the mortgage and real estate sectors. According to research on positive tipping points, systems can undergo rapid transformation when certain preconditions are met and critical thresholds are crossed. In housing markets, we may be approaching such a tipping point as younger generations, burdened by student debt and stagnant wages, increasingly reject traditional homeownership models. The growing popularity of rental communities, shared equity arrangements, and alternative living arrangements suggests that a fundamental shift in how Americans access housing may be underway. For industry professionals and policymakers, understanding these dynamics means recognizing that the current structure of mortgage finance—designed for a different economic reality—may be approaching obsolescence, creating opportunities for more inclusive and sustainable alternatives.
“Big organizing” is becoming increasingly essential in the mortgage and real estate sectors as consolidation continues to reduce competition and increase costs. The mortgage industry has become increasingly concentrated, with a handful of large institutions controlling the majority of lending activity. This concentration has led to less competition, higher fees, and less innovation in mortgage products. However, organized collectives of homebuyers, community organizations, and even smaller lenders are beginning to challenge this status quo by forming alliances that advocate for policy changes, create alternative financing models, and demand greater transparency in lending practices. As Alexandria Ocasio-Cortez has noted, “big organizing” is required to shape major systems—and nowhere is this more evident than in an industry where individual consumers have historically lacked the power to influence terms and conditions that affect their financial futures.
Technology is creating unprecedented opportunities for collective action in mortgage and real estate finance. Digital platforms now enable homebuyers to share information about lending terms, identify discriminatory practices, and organize advocacy campaigns with unprecedented speed and reach. Crowdfunding platforms are making it possible for groups of individuals to invest in real estate projects that would otherwise be inaccessible, while blockchain technology offers potential for creating more transparent and efficient mortgage markets. These technological tools don’t simply provide individual consumers with more options—they fundamentally change the power dynamics of real estate finance by enabling coordinated action at scale. When homeowners use digital tools to share data about lending practices or organize around policy changes, they transform from isolated individuals into a collective force capable of challenging industry norms and demanding better outcomes for all.
The historical example of how public health advocates transformed living conditions offers valuable lessons for today’s housing reformers. In the late 19th and early 20th centuries, activists didn’t simply tell individuals to wash their hands or drink clean water—they changed the entire system by advocating for municipal water treatment, building codes, and public health regulations. Similarly, today’s housing advocates need to move beyond telling individuals to “fix their credit scores” and instead advocate for systemic changes that will create more equitable access to homeownership. This might include reforms to credit scoring algorithms that disproportionately disadvantage certain groups, changes to zoning laws that restrict housing density, or policies that encourage the development of affordable housing in opportunity-rich neighborhoods. By changing the systems that govern housing outcomes, these advocates can help create an environment where everyone has access to safe, stable, and affordable housing.
For individual consumers navigating today’s mortgage markets, the philosophy of collective action offers practical strategies for achieving better outcomes. Rather than approaching homebuying as a purely individual endeavor, consumers can benefit from joining or forming buying collectives that pool resources, share information, and negotiate from positions of strength. These collectives can advocate for better terms from lenders, create group investment opportunities, or even develop alternative financing models that bypass traditional banking institutions. Additionally, consumers can organize around specific policy issues that affect housing affordability, such as property tax reform, zoning changes, or lending regulations. By working together to change the systems that govern housing markets, individual consumers can achieve outcomes that would be impossible through personal effort alone—demonstrating how “becoming somewhat less of an individual” can actually lead to greater personal success in real estate.
Looking to the future, the mortgage and real estate industries will likely undergo significant transformations as collective action continues to gain momentum. We may see the emergence of new financing models that prioritize community benefit over individual profit, increased regulatory oversight of lending practices, and greater transparency in how mortgage rates and terms are determined. The current moment of market volatility and high rates presents both challenges and opportunities—challenges for those struggling to enter the housing market, but opportunities for innovators and organizers to create more inclusive and sustainable alternatives. As historical examples demonstrate, periods of disruption often precede periods of profound change. For those willing to organize, advocate, and work together to build better systems, the coming years could see a fundamental reimagining of how housing finance works in America—one that prioritizes community, stability, and accessibility over the purely individualistic approach that has dominated for too long.
