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

Mohammad Ismail () and Mats Wilhelmsson
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Mohammad Ismail: Department of Real Estate and Construction Management, Royal Institute of Technology, Postal: Teknikringen 10B, 100 44 Stockholm, Sweden

No 22/8, Working Paper Series from Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance

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.

Keywords: housing investment; gentrification; affordability; difference-in-difference; Stockholm (search for similar items in EconPapers)
JEL-codes: C21 R30 R58 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2022-08-16
New Economics Papers: this item is included in nep-eur, nep-ppm and nep-ure
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