Gabriella Kindström: Urban Dynamics and Contemporary Challenges: Essays on Housing and Neighborhood Amenities

Abstract

Essay I (with Che-Yuan Liang) We use microdata on the Swedish population and housing stock to investigate how building new homes affects the housing distribution across income groups. While primarily rich people move into new homes, poor people are well represented among in-movers to vacated homes. As homes age and deteriorate, they filter down; it takes approximately 30 years for new homes to reach an even income distribution. We also find that in municipalities with higher construction rates, every income group gets better access to newer housing and housing space. Overall, we conclude that new homes, even those initially primarily inhabited by rich people, lead to substantial trickle-down effects.

Essay II (with Fabian Brunåker, Matz Dahlberg, and Che-Yuan Liang) Using almost three decades of full-population register data with detailed geo-coded information on how and where all individuals in Sweden live, their moving patterns, and their socio-economic characteristics, this paper examines if new large-scale housing construction is a suitable policy tool for revitalizing poor neighborhoods. The answer is yes. We find that not only do new large developments of market-rate condominiums lead to an increase in the average income of 15% in the poorest quartile of neighborhoods, but the average income rises by 10% also in pre-existing homes. We do not find any signs of displacement of incumbent residents.

Essay III Homeowners often oppose new housing due to a fear of declining property values. However, the effect on prices is theoretically ambiguous. In this paper, I study the impact of new large-scale housing on housing prices using Swedish registry data, data on housing prices, and neighborhood amenities. I find that new housing increases prices in low-income neighborhoods. In contrast, high-income neighborhoods experience a decline in prices, including within their pre-existing housing stock. The latter could partly stem from a suggested increase in densification.

Essay IV Can policymakers affect spatial inequalities by providing local amenities? In this study, I explore the effects of schools on neighborhoods by studying school closures. Using geo-coded, full-population Swedish microdata, I find that school closures decrease the share of high-income earners, primarily attributed to individuals with children. This effect is more pronounced in urban areas, while rural areas become depopulated. These effects align with pre-existing trends, indicating that school closures exacerbate initial spatial inequalities.