Financial Management in Public Housing Companies as Related to the Negotiating Process in Sweden

Abstract

Social programmes tend to have some element of housing in their structure, and recent downward global trends have made studies popular that compare programmes or analyse changes. Within this context, the Swedish system has received attention because of its apparent long-term viability. Rents in this system are set through a negotiation process with tenant organisations, and this paper describes the process because it affects the financial condition of the housing. An ordinary least squares analysis of financial information has been made with regard to revenue generation capabilities, and the first difference results are discussed in terms of the negotiation process in the system. Those numbers suggest the system is improving revenue generation, but not operating profit.