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New housing investments' effects on gentrification and affordability in Stockholm, Sweden

Author

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  • Ismail, Mohammad

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Wilhelmsson, Mats

    (Department of Real Estate and Construction Management, Royal Institute of Technology)

Abstract

Stockholm is constantly changing. New buildings are built, new infrastructure replaces old infrastructure, and the city grows with the addition of new areas. We ask whether specific changes impact surrounding areas in desirable ways. Using difference-in-difference methodology, we have analysed several new construction projects in Stockholm, Sweden, from 2009 to 2014. The outcome variables that we are most interested in are whether the projects themselves affected the socio-economic background of the residents (gentrification) and whether they have affected, or even impaired, affordability. Our results indicate a limited effect of new housing investments on the proportion of people with higher education and on the proportion of younger people. However, we found a positive effect on income and affordability, which may result in more significant gentrification and population displacement over time.

Suggested Citation

  • Ismail, Mohammad & Wilhelmsson, Mats, 2022. "New housing investments' effects on gentrification and affordability in Stockholm, Sweden," Working Paper Series 22/8, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    • Handle: RePEc:hhs:kthrec:2022_008
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    More about this item

    Keywords

    housing investment; gentrification; affordability; difference-in-difference; Stockholm;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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