Welcome to a CEDAR seminar with Lars-Fredrik Andersson.
A long-term view on housing supply: population growth, credit markets, and construction in Stockholm, 1875–2025
This paper examines the development of housing construction in Stockholm over the past 150 years. The findings demonstrate that while long-term population growth has acted as a stimulus for construction, short-term fluctuations in demand have generated considerable imbalances in a market characterised by slow supply responsiveness. In recent decades, housing shortage has intensified, driven primarily by escalating land prices and weak productivity growth within the construction sector.
Although financial market deregulation has expanded household access to credit and thus reinforced demand, construction levels have not returned to the peaks observed during the 1930s and 1960s. Rather than spurring new construction, credit expansion has predominantly contributed to rising property prices, as land costs have increased in tandem.
Simultaneously, incentives to produce standardised and cost-effective housing have diminished. Instead, greater profitability has been found in developing high-end projects in desirable locations, thereby further constraining the sector’s ability to address broad-based housing needs.
All interested are welcome to participate. If you want to participate digitally, please contact Mojgan Padyab to receive a meeting link.
