Micro Apartments : A Potential Solution for the Severe Shortage of Small Affordable Apartments in Stockholm Nóra Gazdag and Anna T

Abstract: The purpose of this thesis is to analyze the emerging global trend of micro apartments to find out if it provides a potential solution for the severe shortage of small, affordable apartments in Stockholm.  As the concept is already a researched area in foreign real estate markets, the lack of research on the demand for micro apartments in Stockholm despite the highest rate of single households and rising housing prices was identified as a research gap.  The aim of the research is to identify the most significant opportunities, risks and obstacles of the micro housing concept applied for the Stockholm market as well as estimating a range of potential demand for varying economic scenarios.  The approach of the research was to conduct empirical studies in the form of interviews with experts in the field and conduct a survey measuring consumer preferences. Furthermore, secondary data was collected in the form of statistical data and extensive literature on the existing research on micro housing in foreign markets, characteristics of the Stockholm housing market and economic outlooks for the region. These findings allowed us to make forecasts for the housing market in Stockholm and estimate the future demand for micro units. The calculations were limited to the ownership market in Stockholm municipality and focusing on a specific target group.  The results were a demand in the most likely economic scenario of 300-400 units in the short term (specified as 2018-2021) and range of 150-250 units in the medium term (specified as 2022-2028).  The originality and the value of the paper lies in collection of opportunities, risks and obstacles of the micro housing concept specifically for Stockholm from the perspectives of multiple actors on the housing market, in addition to providing practical recommendations for developers, the municipality and researchers based on the extensive analysis and also providing a model to estimate the future demand for this housing solution.