A fourth look at public housing in Sweden: The business model
2016 (English)In: Proceedings of the Pennsylvania Economic Association Conference / [ed] Jui-Chi Huang, 2016, in press- p.Conference paper (Refereed)
Comparative housing analyses often find that the Swedish public housing model represents a success story. That is, a good class of housing is offered at a reasonable cost to all sections of the population – irrespective of income, ethnicity, age or type of household. This approach has been called the “Swedish public housing model” and the purpose of this paper is to describe and reflect upon its operation. The company utilized in this study as a research case, AB Bostaden, builds and manages housing in the Umeå municipality. With 15,400 apartments, it is the biggest actor in the Umeå housing rental market, with a market share of approximately 45 percent, and controls 27 percent of the Umeå housing market overall. The background section of the paper provides consideration of both the Swedish system of rental housing as well as aspects of business models. A typological-taxonomic approach to understanding business models is used to deconstruct Bostaden’s approach to its housing market. The business model that results through this approach indicates that the organization functions as a tenant-oriented, municipal utility with core values of human equality, transparency, care and a businesslike approach that captures a high return on rental revenue (~ 19.3% PBT) and a modest return on assets (7.9% ROA, including depreciation) within a value network of the kommun + the energy utility + the university by providing value-for-money rentals within the municipality and by helping tenants to turn their flats into homes and neighborhoods. Continued appreciation of its base assets and apparent economies of scale were instrumental in the success of the operations at the tactical level.
Place, publisher, year, edition, pages
2016. in press- p.
Business models, municipal public housing, Sweden
Social Sciences Business Administration
Research subject Business Studies
IdentifiersURN: urn:nbn:se:umu:diva-121728OAI: oai:DiVA.org:umu-121728DiVA: diva2:933998
Pennsylvania Economic Association Conference