Housing Subsidies in the Nordic Countries1

Housing subsidies are substantial in all the Nordic countries. Very little consideration has, however, been given to analyzing the efficiency of the subsidy systems. This report presents a study on housing subsidies and their distribution and reviews some central issues of principle raised by it. Housing subsidies are defined in financial terms and are calculated for 1979. Both the total amount of subsidies and their distribution by income, household types and tenures are calculated. The results of the study suggest that the distributive effects of housing subsidies are in conflict with fundamental housing policy goals of the Nordic countries. In Finland, the largest proportion of subsidies, in relative terms, goes to groups in the middle income range, while the subsidy profile in Norway is strongly progressive, i.e. high‐income groups get the largest share. In Sweden, the different income groups receive roughly the same share of the total subsidies. Further research is needed to provide a basis for an evaluation of the existing subsidy systems.