Exploring the impact of renovation subsidies on housing markets – evidence from the Swedish property market

What is it about?

We look at how a Swedish government program, called the ROT subsidy, which helps people pay for home renovations, affects house prices. We used data from 2004 to 2020 to see how this subsidy changed the way houses are renovated and their prices in different areas of Sweden. We found that in places where more people used the subsidy, house prices went up more. This shows that government programs like ROT can really change the housing market, which is important for officials to consider when making housing policies. We believe our study helps us understand how such financial help from the government can make a difference in the housing market, especially in terms of who gets access to better housing.

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