Housing pathways and capital gains on the Swedish housing market between 1995 and 2010

摘要: Housing wealth is the largest source of wealth for a majority of Swedish households. Whereas investments in housing are merely defined by the income, the returns on this investment (capital gains) are dependent on local housing market dynamics. Since the 1990s, local housing market dynamics in Swedish cities are altered by the upswing in levels of socio-economic segregation. The simultaneous up-and downgrading of neighbourhoods is reflected in house price developments and exacerbates the magnitude of capital gains and losses. This paper proposes that the selective redirection of housing pathways that causes an upswing in socio-economic segregation, translates into selective capital gains as well. A sequence analysis of the housing pathways of one birth cohort (1970-1975) in Swedish large and middle-sized cities, based on population-wide register data (GeoSweden), is used to explain differences in capital gains between different social groups in the period 1995-2010. The results indicate higher capital gains for individuals with higher incomes and lower gains for migrants. When socio-economic segregation increases, these groups can use their economic and cultural capital to navigate through the housing market in a more profitable way.