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New Housing Construction and the Concentration of Affluence: A study of economic effects associated with new housing construction in Swedish neighborhoods the years 2000 to 2014
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2018 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The concentration of affluence has been on rise in Sweden during the last couple of decades. Meanwhile, the new housing construction is said to mainly be constructed for high-income earners, and the potential gentrification effects resulting in an economic upgrading at the expense of the initial population are widely discussed. This thesis aims to investigate the correlations between the construction of multifamily properties and neighborhood affluence by examining two specific questions. The first question is “Where is new housing construction located?” and aims to examine in which type of neighborhood, in terms of income and demographics, that new housing construction is located. This is investigated using a linear probability function. The second question is “What is the impact of new housing construction on neighborhood affluence?” and is investigated using a difference-indifferences approach. The data enabling the empirical analysis is a sample covering the years 1995 to 2014 from the GeoSweden database. The thesis concludes that new housing construction in general is more common in neighborhoods with a high share of affluent individuals and that new housing construction is associated with an increase in the share of affluent individuals, in compliance with an increased concentration of affluence. 

Place, publisher, year, edition, pages
2018.
Keywords [en]
Concentration of affluence; Segregation; New housing construction; Difference-in-Differences approach
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-356963OAI: oai:DiVA.org:uu-356963DiVA, id: diva2:1237639
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Available from: 2018-08-09 Created: 2018-08-09 Last updated: 2018-08-09Bibliographically approved

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Citation style
  • apa
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  • nn-NB
  • sv-SE
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Output format
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