Uncovering the Historical Dynamics of Consumer, House, and Property Prices in Sweden

Session organizer/s: Rodney Edvinsson

Reconstructing the square meter price in central Stockholm 1283-2022

Session: 5

Authors: Rodney Edvinsson

Co-authors: Lars Ahnland, Lili-Annè Aldman, Emelie Carlsson, Rodney Edvinsson, Klas Eriksson, Bo Franzén, Gustav Ingman, and Jan Jörnmark (preliminary)

Abstract: At present there is a reconstructed index of house prices in Stockholm 1283-2021. It is based on a variety of source, and apply different methods depending on the nature of this source material, which also control for quality changes. For the period 1283-1730, a hedonic price index is presented, for the period 1730-1875, a repeated sales price index, for the period 1875-1975, sail price appraisal ratio, and from 1975, the official index. However, although this index control for quality, it is not a square price index. It is therefore difficult to interpret what the index measures over a very long time period, even if it is reliable of short-term and medium-term fluctuations. The quality per square price can be assumed to increased over time, for example, when tree houses were replaced by stone houses in the early modern period, or when WC, warming and electricity was introduced in the 20th century. An advantage of the square meter price is that it can better indicate affordability, for example, how much it costed for a worker in annual wages to purchase a living space of 30 square meters. To estimate the square meter price we focus on measuring the area of various buildings sold as benchmark to make rough adjustments to the index.

Rent prices in Stockholm from 1800 to 2020

Session: 5

Authors: Gustav Ingman

Co-authors: NA

Abstract: This paper will present a rent price index for Stockholm spanning two centuries, from approximately 1800 to the present day. A variety of historical sources are utilized, including rental contracts, newspaper ads, and official statistics, providing a unique overview of the evolution of rent prices in Stockholm. The presentation will highlight significant changes in the rental market over time, including the impact of urbanization, industrialization, and housing policies. Additionally, the study will explore the relationship between real estate prices and rental incomes, a crucial aspect in the discussion about the presence of historical real estate bubbles. By contributing to the understanding of the economic history of Stockholm, this research will provide insights into the broader trends of urban development and housing markets.

The dynamics of deregulation: Co Ops, villas and the rented market.

Session: 5

Authors: Jan Jörnmark

Co-authors: NA

Abstract: Abstract. For the session ”Uncovering the historical dynamics of consumer, house and property prices in Sweden” The dynamics of deregulation: Co Ops, villas and the rented market. The paper will concern itself with the large reforms that changed the Swedish housing market during 1968-1971. The market for rented apartments was changed by the introduction of bruksvärdessystemet (“the rent value system”) while the market for co-operative apartments (bostadsrätter) and small houses were entirely deregulated. Using new data from several previously unused sources, we trace the evolution of prices in the market for co-op apartments, placing them in the context of the evolution of the rented market and the villas. The dynamics of the conversion (bostadsrättsombildningar) from rented to owned apartments is given special consideration in the analysis. Jan Jörnmark, docent Göteborgs Universitet. Associerad forskare vid avdelningen för fastighetsvetenskap Lunds Tekniska Högskola.