Buy to let housing investors in the Nordic countries

Abstract

The last few decades have seen high population and housing price growth in the Nordic capital cities. The high prices have led to concerns about affordability of housing and unsustainable mortgage levels. Policy makers and media have argued that buy-to-let investors contribute to increasing prices. Simulations in a model with a buy-to-let sector suggest that this has been the case in some Nordic capital cities. However, high population growth creates price pressures independently of the presence of buy-to-let investors. Even the cities with rent regulations experience clear growth in both housing prices and rents.