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Welfare Reform on the Web (November 2004): Social Housing - Overseas

COST CONTROL AND REVENUE GENERATION: THE CASE OF PUBLIC-HOUSING COMPANIES' EXPENSES IN SWEDEN

L. Lindberg, C.-G. Larsson and T.L. Watson

Regional Studies, Vol.38, 2004, p.803-815

A non-profit rental sector was created in Sweden after World War II. Most of the non-profit sector is organised by municipally owned companies and foundations and is supported by generous government subsidies. The study made an ordinary least-squares analysis of financial information from providers in this system with special regard to revenue generation capabilities, the ability to remain profitable and the retention of asset values, for both level and first difference approaches. Results show that, unsurprisingly, properly maintained properties bring in higher rents and are also durable. First difference results suggest that negotiated rents produced operating profits that kept pace with the revenues over the period of the study. In these respects the Swedish non-profit housing system generates like a business.

 

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