An Analysis of the Danish Housing Market

Sofie Aagaard Jensen

Student thesis: Master thesis


The cooperative housing market accounts for eight percent of the Danish housing stock and is particularly widespread in Copenhagen and Frederiksberg municipality. Prices of the housing cooperatives are regulated by law, which states three valuation methods to determine the maximum price. Politically, there is a focus on creating a more transparent cooperative housing market. This has resulted in several proposals to liberalize the cooperative housing market. This thesis aims at analyzing the consequences of liberalization of the cooperative housing market and how it will affect the general Danish housing market. User cost calculations and comparisons forms the basis to determine the price effects in the housing market. The calculations show that the consequences of liberalization are dependent on the size of the cities. The biggest price effects are expected in Frederiksberg. Here, the prices of cooperative housing will increase by up to 75 percent. In Copenhagen, prices will rise up to 68 percent while Aarhus will follow with an expected increase of up to 39 percent. Outside the major cities, a more moderated increase is expected. Liberalization will also affect the owner and rented housing market in the largest cities. Liberalization of the housing market will probably lead to a fiscal equilibrium between owner and cooperative housing. This will dampen the effect, as housing cooperatives will then be subject to property tax, which they are currently exempt from.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2017
Number of pages88