Swedish housing prices have been on an upward trend for a longer period of time. A significantpart of this increase can be attributed to low interest rates and an optimistic outlook for thefuture. However, discussions have emerged suggesting that there is a lack of comprehensivefoundations for the high price levels. In recent years, consumers' perception of their homes hasbeen a contributing factor to this phenomenon. With that said, the purpose of this study is todescribe the aspects underlying consumers' willingness to pay and how this impacts the housingmarket. The study is based on an empirical analysis that is compared against the existing theoryof location, condition, layout, and price as determining factors. The study is conducted using adeductive research approach. To understand the value of a home based on individuals'preferences, the study relies on the hedonic pricing model. Furthermore, a survey has beendesigned to gather information about consumers' housing situation and the factors influencingtheir willingness to pay. These results have been tested to ensure that they are not randomthrough an independent t-test, and subsequently divided into different groups to identify anysignificance. The tested groups include gender, age, and gender combined with age. The resultsfrom the t-test have been compared with existing theories on consumer preferences anddiscussed. The conclusion of this work is that all consumers have different approaches regardingwhich aspects they are willing to pay more for and value higher in a home. Many of these aspectsshow no significant differences in valuation or willingness to pay based on gender, age, or gendercombined with age. This suggests that several respondents prioritize differently depending on thestage of life they are in. However, the study reveals some differences in how men and womenprioritize different aspects. Two aspects that men value higher and are more willing to pay forare location and layout. The results also indicate, among other things, that the youngergeneration does not prioritize large plots/gardens or garage space as highly as the oldergeneration.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:kau-96483 |
| Date | January 2023 |
| Creators | Laukkanen, Nicolai, Ståhl, Gustav |
| Publisher | Karlstads universitet, Handelshögskolan (from 2013) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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