The acute effects of gun violence on the local housing market: evidence of fatal and non-fatal shootings in northern Stockholm

Abstract: This study estimates the effects of gun violence on local housing markets in Stockholm, Sweden, divided by fatal, injurious and non-harmful shootings using data on apartment sales between 2018-2021. A significant effect at the 5% level is found for non-harmful shootings, with the occurrence of such shootings increasing apartment prices by 10,9%, and a significant effect at the 10% level is found for the occurrence of fatal shootings, increasing apartment prices by 1.3%. The estimated impacts on apartment prices are inconclusive in implications for residents' crime aversion. The occurrence of gun violence during the marketing period of apartments is found to be significantly correlated with price concessions and housing liquidity in terms of time on the market.