Determinants of Housing Demand: Analysis of Census Data for the County of Stockholm, 1970

In this study housing demand is analyzed using 1970 Census data for households in the county of Stockholm grouped by census tract. The statistical results indicate an elasticity of housing expenditure per household with respect to permanent income of less than one. The estimated income elasticity of demand for rooms per household is 0.4, the corresponding elasticity per capita is 0.5. Demand for rooms per capita also appears to be responsive to changes in the average age of the population. Demand for rooms per household is found to be more sensitive to household size than in earlier studies, probably as a result of the new Swedish system of housing subsidies. The income elasticity increased when the activity rate was included in the regression. Sex and martial status had no significant effect on housing demand.