Browsing by Author "Ylinen, Rasmus"
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- Durable housing model in Finland: Population and housing price change from 2010 to 2020
School of Business | Master's thesis(2024) Ylinen, RasmusThis thesis studies the relationship between population changes and housing prices in ten Finnish municipalities from 2010 to 2020. Using the durable housing model as our basis, we hypothesise based on previous research that housing prices are more sensitive to population decline than population gain. This is due to housing supply being elastic when demand grows, but inelastic when demand drops. The thesis looks at the population and price changes on a 1km-by-1km level and find that on the decadal level prices rise by 0.16 percentage points per each percent increase in population, while prices drop by 0.69 percentage points per each percent decrease in population, which is in line with previous research and the theoretical hypothesis. Contrary to previous studies, this study allows for intra-city price and population changes, and we find that we can see the effect of durable housing within growing municipalities in Finland, namely Helsinki, Vantaa, Espoo, and Tam-pere. This is a novel finding, as previous research has looked on city and prefecture level data. Policymakers on a national level should consider the polarizing effects that decreasing populations and housing prices have, while city officials in growth cities should also consider the effects of durable housing within their policymaking. - Durable housing model in Finland: population changes on a regional level and their effect on housing prices in Finland
School of Business | Bachelor's thesis(2021) Ylinen, RasmusThis empirical paper aims to study the effects population changes have had on housing markets on a regional level in Finland from 1988 to 2018 and further understand the implications polarized growth could have on local housing markets in the future. The framework for the analysis is Glaeser & Gyourko’s (2005) durable housing model, which allows for asymmetric changes in prices regarding population change. The basis is that prices increase less in magnitude in growing cities than they decrease in declining cities. We only partially observe the model’s effect in Finland, with housing prices declining in regions with decreased population, while the results from regions with population we observe a rise in housing prices, but we cannot conclude the magnitude. We also see that in recent years there has been a divergence in the housing market with most regions seeing relative decline in housing prices except for a few key regions. This is in line with current population predictions for the regions of Finland. We also note that Finland is facing a declining population in the future and this poses further challenges for regional development and income equality.