Analyzing Market Attraction: Focus on the Housing Market

Abstract: The purpose of this thesis is to analyze the attractiveness of the regional housing market and the factors effecting it. The analysis focuses on municipalities in Sweden and is based on the appliance of Tobin’s Q as a measurement of regional attractiveness, inspired by the previous work of Berg and Berger (2006). Nine market determinants were identified and analyzed with respect to regional attractiveness. Out of these, a well-educated labor force, along with the amount of consumer services available within a municipality and its proximity to the coastline proved to induce the most significant influence. Additionally, some evidence of varying impact from the factors was found across urban-rural range.