An Empirical Study on the Effect of Income on Indoor Living Space

Sammanfattning: This thesis examines the relationship between average income and demand for indoor living space in Swedish municipalities. We use average indoor living space to approximate demand for indoor living space and restrict ourselves to homeowners in this study. Furthermore, we restrict ourselves to residents who live in buildings containing up to two residential units. We call the types of housing we examine resident-owned small-house units. The study utilizes multiple regression analysis with municipality-fixed effects. The control variables used in this study are population, population density, the average price per square meter, and the average price for a resident-owned small-house unit. Our regressions find a positive correlation between average income and indoor living space.