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Housing market filtering in the Oslo region: pro-market housing policies in a Nordic welfare-state context

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  • Lena Magnusson Turner
  • Terje Wessel

Abstract

Vacancy chain theory suggests that mobility opportunities spread within and between specific states, typically flowing from attractive to less attractive units, with households moving in the opposite direction. We explore whether such welfare gains apply in a context, the Oslo region, which combines egalitarian welfare programmes and pro-market housing policies. We use merged census and register data from 2011, and include all events that initiate vacancies. Our results show that rental submarkets function poorly. There are many vacancies, but most of them are immediately absorbed by recruits, that is, households who leave no vacancy behind. Opportunities for disadvantaged groups are further reduced by rapid absorption of owner-occupied flats, often because privileged nest-leavers eschew the rental markets. Two related outcomes are segmentation between submarkets and segregation between Oslo Outer East and the remaining city. All of these adverse consequences reflect the costs of current policies, and call for initiatives that increase and improve opportunities in the rental sector.

Suggested Citation

  • Lena Magnusson Turner & Terje Wessel, 2019. "Housing market filtering in the Oslo region: pro-market housing policies in a Nordic welfare-state context," International Journal of Housing Policy, Taylor & Francis Journals, vol. 19(4), pages 483-508, October.
    • Handle: RePEc:taf:intjhp:v:19:y:2019:i:4:p:483-508
    DOI: 10.1080/19491247.2018.1540740
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    Cited by:

    1. Bratu, Cristina & Harjunen, Oskari & Saarimaa, Tuukka, 2023. "JUE Insight: City-wide effects of new housing supply: Evidence from moving chains," Journal of Urban Economics, Elsevier, vol. 133(C).
    2. Matthew Palm & Katrina Eve Raynor & Georgia Warren-Myers, 2021. "Examining building age, rental housing and price filtering for affordability in Melbourne, Australia," Urban Studies, Urban Studies Journal Limited, vol. 58(4), pages 809-825, March.
    3. Kristin Kjærås, 2024. "The politics of urban densification in Oslo," Urban Studies, Urban Studies Journal Limited, vol. 61(1), pages 40-57, January.
    4. Stephen Malpezzi, 2023. "Housing affordability and responses during times of stress: A preliminary look during the COVID‐19 pandemic," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 9-40, January.
    5. Oguzhan Cepni & Rangan Gupta & Yigit Onay, 2022. "The role of investor sentiment in forecasting housing returns in China: A machine learning approach," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(8), pages 1725-1740, December.
    6. Mast, Evan, 2023. "JUE Insight: The effect of new market-rate housing construction on the low-income housing market," Journal of Urban Economics, Elsevier, vol. 133(C).
    7. Evan Mast, 2019. "The Effect of New Market-Rate Housing Construction on the Low-Income Housing Market," Upjohn Working Papers 19-307, W.E. Upjohn Institute for Employment Research.
    8. Kindström, Gabriella & Liang, Che-Yuan, 2024. "Does new housing for the rich benefit the poor? On trickle-down effects of new homes," SocArXiv u7hjv, Center for Open Science.
    9. Bengt Andersen & Hannah Eline Ander & Joar Skrede, 2020. "The directors of urban transformation: The case of Oslo," Local Economy, London South Bank University, vol. 35(7), pages 695-713, November.
    10. Kauko Tom, 2022. "On Place Safety," Real Estate Management and Valuation, Sciendo, vol. 30(1), pages 65-70, March.
    11. Bratu, Cristina & Harjunen, Oskari & Saarimaa, Tuukka, 2021. "City-wide effects of new housing supply: Evidence from moving chains," Working Papers 146, VATT Institute for Economic Research.

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