Household allocation and spatial distribution in a market under ("soft") rent control

• We analyse whether segregation exists in the rental housing market in Stockholm, Sweden, a market under persistent and all-embracing, yet "soft", rent control. We use segregation measures for the uncontrolled cooperative housing segment as benchmarks for analysing whether rent control counteracts segregation. We apply the analyses to a rich dataset encompassing some 400,000 households. We find that income segregation is significantly lower in the rent control segment than in the free market benchmark. However, when analysing segregation with respect to other segregation measures, the rental housing market is more segregated in these respects than in the non-regulated market for cooperatives. Rent control has arguably led to a comparatively flat rent gradient over the city and thus the comparatively low rents in the central, and most attractive, areas of the city provide a general subsidy to those who live in these areas. But according to our results this subsidy does not efficiently benefit households with low educated level, households with children, young households or households with a migrant background.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Nyckelord

Rent control

Segregation

Income

Ethnicity

Distance gradient

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)