Renovations affect tenants and homeowners differently

In a comparative study of rental and tenant-owned housing, IBF human geographers Karin Backvall, Åse Richard, and Irene Molina, together with sociologist Dominika Polanska from Södertörn University, conducted interviews with residents and analyzed statistics and reports. The study focuses on multi-family housing in Stockholm and Uppsala and is published in the Journal of Urban Affairs.

The researchers found significant differences in both the scope and consequences of renovations depending on the type of housing.

“In tenant-owned buildings, the members of the housing cooperative usually drive renovation decisions. In rental housing, however, the interests of the residents are often not taken into account. Instead, renovations are driven by profit motives,” says Irene Molina, professor of human geography at IBF.

A key part of the study concerns communication and participation in different types of renovation processes. The researchers found stark inequalities in residents' ability to influence these processes. While owners in housing cooperatives formally have the opportunity to participate in renovation decisions through board elections and annual meetings, tenants often report limited information and no real influence over the renovation process.

Tenants interviewed agreed that renovations were necessary but wanted to limit the rent increases that often follow. They expressed a desire to be involved in the planning process and have more influence over what was renovated and to what extent. Tenants were also critical of public housing companies profiting instead of reinvesting surpluses into maintenance and renovation. Interviewees also noted shortcomings in ongoing maintenance, both among public and private landlords.

Homeowners in tenant-owned buildings, on the other hand, were generally better informed and had greater opportunities to influence the renovation process. Although most agreed on the importance of keeping costs down, conflicts often arose around the extent of the renovation. Standards varied significantly even within the same building, and this was reflected in differing views on the need for structural renovations. A clear tension existed between owners wanting to save for long-term maintenance and those preferring to avoid fee increases in the short term. Researchers identified two main strategies among housing cooperative boards: either gradually increasing monthly fees to build a fund for future renovations or avoiding unnecessary renovations altogether. A common argument against fee hikes and maintenance funds was that current residents shouldn’t have to pay for future upkeep that may not benefit them directly.

The financial outcomes of renovations also differed. For tenants, rent increases ranged from 23% to 70% after renovations, while in tenant-owned units, monthly fees (which are usually lower) rarely rose more than 10–15%.

The study reinforces the view that inequality exists in the Swedish housing market.

“Tenants are more often hit by steep rent hikes, increasing the risk of being forced to relocate to more affordable housing. In contrast, renovations in tenant-owned buildings are typically more cautious and cost-conscious, aimed at protecting the residents’ investment. Long-term, owners benefit from renovations through increased market value, as long as monthly fees are not significantly impacted, for instance by taking on large new loans,” says Irene Molina.

The researchers point to increased financial market involvement in the housing sector as a key reason tenants are disadvantaged.

“This creates economic and social insecurity for many low-income earners who rely on rental housing as their only housing option. In the long term, these inequalities worsen the housing crisis in our major cities,” says Irene Molina.