Bostadsbubbla i Stockholm kommun
Sann existens eller falsk spekulation?
In light of the massive property bubbles that have been bursting in the USA, Spain and Ireland during the last decade, the aim of this thesis is to clarify whether ? or to what degree - the municipality of Stockholm might experience a property bubble in the near future. The municipality of Stockholm is undergoing a housing shortage and house prices have risen during the last few years. Neoliberalism and property bubbles are used as a theoretical framework in this paper. The methodology consist of semi structured interviews, analysis of documents and statistical data from Eurostat, Valueguard and the Swedish administrative authority; Statistiska centralbyrån (SCB). The house market of Stockholm municipality has since 1990 been influenced by neoliberal ideologies. The state of Sweden has eliminated house subvention and interest contribution during the government of the liberal parties. Rented apartments have been converted to co-operative apartments as they generate a higher value, but they also claim a higher economic strength by its speculators. Special design program for new house constructions is another turn to neoliberal ideology by the municipalities. They desire to build outstanding top projects to generate more attractive areas. The result however, demonstrates that there is no existing risk of a bursting property bubble in the municipality of Stockholm. Even if there is a lack of housing, there are more dwellings than we think. There must be mobility in the existing stock of dwellings. Political regulations, as capital gains tax, discourage this mobility. Together with the increase in population and a shortage of new house constructions, the house prices have risen. The reason for the property bubble not existing mostly depends on three factors; fundamental values that explain the increasing house prices; persons with high mortgage loan also have high income; Sweden has no tradition of seeing dwellings as a speculative resource.