Reforming the Swedish housing market: Addressing an imbalanced housing market through sub-let housing
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
The Swedish housing market is imbalanced in urban areas which has caused a lot of people to shift to the sub-let housing market. In 2013 a political reform was implemented that allowed sub-let providers of owner occupied housing to add a capital return mark-up on the sub-let rent and shifted negotiation power in favor of the sub-let provider. This paper aims to study the effects of said reform on the sub-let rental housing market. The paper follows a reduced form approach on the direct effect on rent levels and supply and analyzes the rent levels in different markets and tenures in Sweden. I use a difference in difference model to estimate the rent change of the reform on sub-let lease contracts and estimate hypothetical rent levels using matching and hedonic regression to analyze compliance of the rent control in Sweden. I find that rents increase at a significantly faster rate for co-op apartments over tenancies after the reform and that there is a significant increase and urbanization of the supply of co-op apartments in the sublet market.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:uu:diva-297079OAI: oai:DiVA.org:uu-297079DiVA: diva2:940759
Elinder, Mikael, Universitetslektor
Bengtsson, Niklas, Biträdande universitetslektor