Lyckas hyresregleringen motverka segregation i Stockholm
The Swedish system of rent control has recieved a lot of critique for creating an ill-functioning housing market. Supporters however claim that a movement towards market rents would lead to increased segregation. We evaluate whether rent control has managed to counteract segregation in Stockholm. Our evaluation is based on a data set of 292 representative households in Stockholm. We find that residents in rent controlled apartments in attractive locations typically are born in Sweden by Swedish parents and that they are likely to have a higher income than residents in rent controlled apartments in less attractive locations. Contrary to earlier research we also present evidence showing that younger people on average live in more attractive apartments than older people with the same income. For all measures the controlled rental market shows a higher degree of segregation than the uncontrolled housing cooperatives market (bostadsrättsmarknaden).