Scandinavian Working Papers in Economics

Working Paper Series,
Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance

No 20/18: What determines the supply of housing for the elderly, and how is it related to the spread of Covid-19 and future demographic changes?

Maria Kulander () and Mats Wilhelmsson ()
Additional contact information
Maria Kulander: University of Gävle, Sweden
Mats Wilhelmsson: Department of Real Estate and Construction Management, Royal Institute of Technology, Postal: Division of Real Estate Economics and Finance, Royal Institute of Technology, Teknikringen 10B, 100 44 Stockholm, Sweden

Abstract: As in many other countries, the population in Sweden is getting older. It means that the number of older people in society increases in absolute numbers and relative terms. Consequently, this will mean that the need for elderly housing will increase and the cost of these investments will be high. The following study aims to quantitatively analyse the spatial distribution of the number and size of housing for the elderly in Sweden over 2013-2018. The number of elderly housing per capita is not evenly distributed, and a large part of the explanation is, of course, that the number of older people is not evenly distributed between municipalities. Nevertheless, we can also state that the municipality's income level and tax base, as well as the geographical size and degree of urbanisation, play a role. If the municipality has a surplus or deficit in the supply of special housing for the elderly, it has no correlation with the distribution of Covid-19 cases or with the forecast number of older people in the future.

Keywords: Elderly; Housing stock; Covid-19; Demographic

JEL-codes: J11; R23; R31

35 pages, December 28, 2020

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