| Summary: | This study has examined what effects rent control deregulation in new production could have for the profitability of real estate companies at the Swedish housing market and the supply of rental apartments. The study also examined what role the reintroduced investment aid plays when deregulating rent control in new production. In order to answer the study´s research questions, a qualitative method was adopted in which 10 semi-structured interviews was conducted. After the interviews, the theoretical framework was further supplemented according to new approaches that was found during the interviews. The study therefore started in a deductive method approach, but during the later stage inductive elements were implemented, which resulted in an abductive approach. The study showed that real estate companies’ profitability will not be affected by higher rents but rather by safer investments with less risk. A free market-based rent in new production will not lead to increased rents as these are already close to an expected market level. Real estate companies would have more safety in that the rent set applies. It is hard to say exactly how a deregulation of rent control in new production will affect the supply of rental apartments at the Swedish housing market. The Swedish housing market has a slowly adapted supply range, which creates difficulties for the supply to meet the demand. The fact that it takes a long time to plan and build new construction leads to a risk that a lot may have changed, both in terms of economic conditions and in demand, before the construction is actually completed. Despite the fact that investment support was reformed when it was reintroduced, both the industry organizations and the majority of the real estate companies that participated in the study are of the opinion that it could have worked more efficiently.
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