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

Abstract: This study examines whether neighbourhoods in Stockholm that became more mixed in housing tenure between 2015 and 2023 also experienced increased income diversity. Using data for 1,287 neighbourhoods, the analysis applies entropy-based diversity indices, two-way fixed-effects models, and staggered difference-in-differences estimators. The results show a small but statistically significant positive impact: neighbourhoods with increasing tenure diversity get small gains in income diversity. The effect is context-dependent and more pronounced in urban settings, areas dominated by home ownership, and lower-income neighbourhoods. Changes in educational and population diversity are more related to income diversity than to shifts in household type or citizenship. In general, the findings suggest that while tenure diversification can support income mixing, its impact remains limited without complementary housing and equity policies.

Keywords: income diversity; housing tenure; mixed-tenure neighbourhoods; entropy

JEL-codes: R21; R23; R31

Language: English

36 pages, October 20, 2025

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