Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: The affordability and stability of housing are key determinants of economic wellbeing, but their effects on the academic success of university students remain underexplored. This paper investigates the causal effect of early access to affordable student housing on academic performance using a unique lottery-based allocation system in Sweden. The findings show that early access to student housing significantly improves students’ academic performance, with grades increasing by 28% of a standard deviation, and students being 33% more likely to rank in the top 5% of their class. The results suggest that housing stability allows students to focus more on their studies, reducing the need for employment and long commutes.

Keywords: Student Housing; Higher Education; Test Scores

JEL-codes: C93; I21; I23; R21

Language: English

88 pages, December 5, 2025

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