Lower housing prices in areas that end up on the police list
What happens when a residential area is designated as "vulnerable"? How does it affect how the area is perceived and does it have any consequences for housing prices? A new study with researchers affiliated with the Urban Lab has taken a closer look at these questions.
The police's reports on "vulnerable areas" have had a great impact both in the political debate and in the media. When a residential area is listed as "vulnerable" by the police, it affects how the area is perceived, which in turn leads to a negative impact on housing prices, according to the new study presented in Economic Debate.
– Debaters have claimed that the lists can stigmatize and affect the areas negatively. So far, this has primarily been a hypothesis. We show in our empirical study that this claim also has some bearing in the data. In the long run, this also has potential implications for the individuals who live in these areas. For example, there are previous American studies that show that individuals living in areas that have a bad reputation have more difficulty entering into financial transactions. Such consequences are of course also possible in a Swedish context, says Henrik Andersson, researcher in Economics at IBF and one of the co-authors of the article.
Article
Article in Ekonomisk debatt (in Swedish):
Polisens lista över utsatta områden minskar efterfrågan på att bo i de utpekade områdena
Authors:
- Che-Yuan Liang, Senior Lecturer/Associate Professor in Economics, Institute for Housing and Urban Research
- Fabian Brunåker, PhD in Economics, Department of Economics
- Greta Fredriksson, PhD in Economics, Institute for Housing and Urban Research
- Henrik Andersson, Associate Professor and Researcher in Economics, Institute for Housing and Urban Research
- Ina Blind, Senior Lecturer in Economics, Kristianstad University
- Jakob Granath, PhD in Economics, Department of Economics
- Matz Dahlberg, Professor of Economics, Institute for Housing and Urban Research