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Reducing Housing Subsidy: Swedish Housing Policy in an International Context

Author

Listed:
  • Bengt Turner

    (Institute for Housing Research, Uppsala University, Box 785, 80129 Gävle, Sweden, Bengt Turner@IBF.UU.SE)

  • Christine M. E. Whitehead

    (Department of Economics, London School of Economics, Houghton Street, London, WC2A 2AE, UK, c.m.e.whitehead@lse.ac.uk)

Abstract

Swedish housing policy was dramatically changed during the 1990s. A traditional formally tenure-neutral and generous subsidy system has been replaced by much lower levels of assistance, more directed at lower-income households and depressed areas. This paper sets the Swedish policy in an international context as part of a much more general pattern of reduced and rebalanced expenditures associated with liberalisation and the transfer of risk. The paper then addresses the direct and indirect impacts of the Swedish 'grand restructuring', concentrating on the extent of the cutbacks; rents and prices; levels of output; and the potential for increased segregation. The evidence suggests that the policy changes, together with their effect on expectations, significantly modified the housing system. They reduced demand for new building, particularly in less-pressured areas; increased vacancies, especially in the social sector; transferred risk to both the social and private sectors; and increased outcome differentials between the well-off and those with fewer resources—both in terms of individuals and areas. The analysis presented here provides evidence against which the Swedish policy can begin to be evaluated. It also suggests lessons for other industrialised economies that are addressing similar issues.

Suggested Citation

  • Bengt Turner & Christine M. E. Whitehead, 2002. "Reducing Housing Subsidy: Swedish Housing Policy in an International Context," Urban Studies, Urban Studies Journal Limited, vol. 39(2), pages 201-217, February.
    • Handle: RePEc:sae:urbstu:v:39:y:2002:i:2:p:201-217
    DOI: 10.1080/00420980120102920
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    References listed on IDEAS

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    1. Englund, P. & Hendershott, P.H. & Turner, B., 1995. "The Tax Reform and the Housing Market," Papers 20, Uppsala - Working Paper Series.
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    Cited by:

    1. Sukumar Ganapati, 2010. "Enabling Housing Cooperatives: Policy Lessons from Sweden, India and the United States," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(2), pages 365-380, June.
    2. Mikaela Backman, 2014. "Returns to Education across the Urban-Rural Hierarchy," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 33-59, Spring.
    3. Desiree Fields, 2017. "Unwilling Subjects of Financialization," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 41(4), pages 588-603, July.

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