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

Abstract: Housing association fees are an important factor in determining condominium prices. Despite their importance, it remains uncertain how much these costs are reflected in sale prices. We examine how deviations from expected monthly fees affect apartment prices in Stockholm. The data include more than 80,000 transactions from 2017, 2021 and 2023. We apply a two-step method. First, we model expected fees based on age, size, and location. Then we used the residuals in a hedonic price model with spatial controls. Higher-than-expected fees reduce sale prices. On average, each additional 1,000 SEK in monthly residual cost reduces the price by 2–3%. The elasticity remains stable over time but weakens in 2023. Our spatial analysis confirms stronger capitalisation in central areas compared to peripheral zones, and quantile regressions reveal small variation across the price spectrum. The effect does not appear driven by omitted variables or spatial autocorrelation. Our results help inform valuation and oversight in cooperative housing.

Keywords: Housing cooperatives; Capitalisation; Monthly fee; Hedonic pricing; Housing finance; Spatial variation; Stockholm

JEL-codes: C21; G11; R21; R31

Language: English

26 pages, November 12, 2025

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