New Housing Construction and the Concentration of Affluence

In Sweden, newly built homes have become increasingly accessible to a more limited group of people since 1990. Compared to the income of residents in other homes, the average income of residents in newly built homes has increased significantly. During the same time period, residential segregation also increased. In this paper, we study whether constructions of new homes have contributed to the geographic concentration of affluence. We first study whether a disproportionate amount of new homes have been constructed in affluent neighborhoods. Then, we investigate whether new housing constructions lead to a gentrification of neighborhoods using a difference-in-differences design.


Che-Yuan Liang
Gabriella Kindström