The Building Houses on Rented Land Model (BHRLM) was a pivotal land development model that drove Shanghai’s urbanization in the early modern era. This research examines the spatial generative mechanism of the Prepaid Building Houses on Rented Land Model (PBHRLM), prevalent during 1938–1941. It reveals how the wartime economic environment enabled interest alliances constituted with developers, landowners, and tenants to stimulate urban spatial growth. Firstly, we aim to analyze the features of architectural types linked to the PBHRLM using data-driven methods. Secondly, we aim to apply financial capital theory to investigate the innovations of financing methods. Finally, we draw on speculation theory to establish connections between the features of architectural types and the innovations of financing methods. The results include the following: (1) The PBHRLM’s dominant architectural types—new-styled lane houses, semi-shikumen lane houses, and garden houses—shared low-rise, high-density spatial features. (2) The PBHRLM’s innovations of financing methods lie in its convergence of financing and profitability, reflecting developers’ speculative intent. The research concludes that the PBHRLM operated as a spatial actuarial practice. Through risk games, the developers utilized the model to liberate land development from the control of financial capital and achieved multi-stakeholder synergy, generating small-scale, dispersed land development patterns. At the same time, surging housing demand thus perpetuated architectural types catering to the middle class with low-rise, low-tech tectonics and independent dwelling styles that continued to densely populate Shanghai concessions.
He et al. (Wed,) studied this question.