IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v36y1999i4p683-697.html
   My bibliography  Save this article

Social Housing Finance in Sweden

Author

Listed:
  • Bengt Turner

    (Institute for Housing Research, Uppsala University, Box 785, 80129 Gävle, Sweden, bengt.turner@ibfuu.se)

Abstract

Sweden historically had a highly subsidised housing construction and rehabilitation. Subsidies were mainly channelled through an interest subsidy system, which reduced initial capital expenditures. A boom in the housing market in the late 1980s turned into a 'bust' in the early 1990s. This was due to a combination of factors: a lower inflation rate, a deep economic recession and reduced interest subsidies in combination with a tax reform. The effect was to create a large price fall, vacancies, a low construction rate and large defaults. The bank crisis was counteracted by a tighter credit market, with a more thorough screening of borrowers. Municipal housing companies lost their protected position on the credit market in the early 1990s. Many of the companies were severely hurt by an increasing number of vacancies, and had an insufficient safeguard in terms of a low equity. It is thus anticipated that municipal housing companies will be an important target for bank screening in the future, and it is anticipated that banks will develop more sophisticated risk-management techniques in the housing market, which also will include municipal housing.

Suggested Citation

  • Bengt Turner, 1999. "Social Housing Finance in Sweden," Urban Studies, Urban Studies Journal Limited, vol. 36(4), pages 683-697, April.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:4:p:683-697
    DOI: 10.1080/0042098993402
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/0042098993402
    Download Restriction: no
    File URL: https://libkey.io/10.1080/0042098993402?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kearl, J R, 1979. "Inflation, Mortgages, and Housing," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1115-1138, October.
    2. Englund, Peter, 1990. "Financial deregulation in Sweden," European Economic Review, Elsevier, vol. 34(2-3), pages 385-393, May.
    3. Koskela, Erkki & Loikkanen, Heikki A. & Viren, Matti, 1992. "House prices, household saving and financial market liberalization in Finland," European Economic Review, Elsevier, vol. 36(2-3), pages 549-558, April.
    4. Muellbauer, John, 1994. "The Assessment: Consumer Expenditure," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 10(2), pages 1-41, Summer.
    5. Agell, J. & Berg, L., 1995. "Did Financial Deregulation Cause the Swedish Consumption Boom?," Papers 1995-21, Uppsala - Working Paper Series.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davis, Steven J. & Henrekson, Magnus, 2005. "Wage-setting institutions as industrial policy," Labour Economics, Elsevier, vol. 12(3), pages 345-377, June.
    2. Chen, Jie, 2006. "Housing Wealth and Aggregate Consumption in Sweden," Working Paper Series 2006:16, Uppsala University, Department of Economics.
    3. Duncan MacLennan & Alison More, 2001. "Changing Social Housing In Great Britain: A Comparative Perspective," European Journal of Housing Policy, Taylor and Francis Journals, vol. 1(1), pages 105-134.
    4. Nathanael Lauster, 2006. "A room of one’s own or room enough for two? Access to housing and new household formation in Sweden, 1968–1992," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 25(4), pages 329-351, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Berg Lennart & Bergström Reinhold, 1996. "Consumer Confidence and Consumption in Sweden," Working Paper Series 1996:7, Uppsala University, Department of Economics.
    2. Bandiera, Oriana & Caprio, Gerard & Honohan, Patrick & Schiantarelli, Fabio, 1999. "Does financial reform increase or reduce savings ?," Policy Research Working Paper Series 2062, The World Bank.
    3. repec:zbw:bofrdp:1995_015 is not listed on IDEAS
    4. Takala, Kari, 1995. "Permanent income hypothesis and saving in Finland," Research Discussion Papers 15/1995, Bank of Finland.
    5. Takala, Kari, 1995. "Permanent income hypothesis and saving in Finland," Bank of Finland Research Discussion Papers 15/1995, Bank of Finland.
    6. Kim, Byung Yeon, 1997. "Soviet Household Saving Function," Economic Change and Restructuring, Springer, vol. 30(2-3), pages 181-203.
    7. Essi Eerola & Niku Maattanen, 2018. "Borrowing constraints and housing market liquidity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 27, pages 184-204, January.
    8. Hamid Boustanifar & Everett Grant & Ariell Reshef, 2018. "Wages and Human Capital in Finance: International Evidence, 1970–2011 [Financial reform: what shakes it? What shapes it?]," Review of Finance, European Finance Association, vol. 22(2), pages 699-745.
    9. De Ãvila, Diego Romero, 2003. "Finance and growth in the EU: new evidence from the liberalisation and harmonisation of the banking industry," Working Paper Series 266, European Central Bank.
    10. Goodness C. Aye & Stephen M. Miller & Rangan Gupta & Mehmet Balcilar, 2016. "Forecasting US real private residential fixed investment using a large number of predictors," Empirical Economics, Springer, vol. 51(4), pages 1557-1580, December.
    11. Charles Goodhart & Boris Hofmann, 2003. "Deflation, Credit and Asset Prices," Working Papers 132003, Hong Kong Institute for Monetary Research.
    12. Boris Hofmann, 2003. "Bank Lending and Property Prices: Some International Evidence," Working Papers 222003, Hong Kong Institute for Monetary Research.
    13. Emilio Fernandez-Corugedo, 2004. "Consumption Theory," Handbooks, Centre for Central Banking Studies, Bank of England, number 23, April.
    14. Lennart Berg, 2002. "Prices on the second-hand market for Swedish family houses: correlation, causation and determinants," European Journal of Housing Policy, Taylor and Francis Journals, vol. 2(1), pages 1-24.
    15. Kydland, Finn & Rupert, Peter & Sustek, Roman, 2012. "Housing Dynamics over the Business Cycle," University of California at Santa Barbara, Economics Working Paper Series qt7bn5k73m, Department of Economics, UC Santa Barbara.
    16. Carmen M. Reinhart & Ioannis Tokatlidis, 2003. "Financial Liberalisation: The African Experience," Journal of African Economies, Centre for the Study of African Economies, vol. 12(Supplemen), pages 53-88, September.
    17. Theodore Panagiotidis & Panagiotis Printzis, 2016. "On the macroeconomic determinants of the housing market in Greece: a VECM approach," International Economics and Economic Policy, Springer, vol. 13(3), pages 387-409, July.
    18. White, Lucy, 2006. "Prudence in Bargaining: The Effect of Uncertainty on Bargaining Outcomes," CEPR Discussion Papers 5822, C.E.P.R. Discussion Papers.
    19. Emilio Fernandez-Corugedo & John Muellbauer, 2006. "Consumer credit conditions in the United Kingdom," Bank of England working papers 314, Bank of England.
    20. Malmendier, Ulrike M. & Botsch, Matthew J., 2020. "The Long Shadows of the Great Inflation: Evidence from Residential Mortgages," CEPR Discussion Papers 14934, C.E.P.R. Discussion Papers.
    21. Matthew Chambers & Carlos Garriga & Don E. Schlagenhauf, 2007. "Equilibrium mortgage choice and housing tenure decisions with refinancing," Working Papers 2007-049, Federal Reserve Bank of St. Louis.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:36:y:1999:i:4:p:683-697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.