Formation of House Prices in Sweden

In this research, Sweden’s municipalities are categorized into five economic regions which put emphasis on location. Furthermore, since house prices reflect and are reflected by the existing cycles in the economy, four time periods are considered. By using extensive data collected by Sweden Statistics (SCB), this study tests eight variables factors to be used in a cross-section analysis which will help researchers understand which factors are consistent in explaining the formation of house prices in terms of location and time. The conclusion that can be drawn is that no factor can fully explain house prices at a national level and that the Population variable was consistent in regional changes and Employment was consistent in time changes. This has lead to a greater understanding of the field of regional house prices in order for it to contribute to real estate investments or purchases.Master thesis in Economic