Queue-based allocation of rent-controlled apartments: consequences for younger and older households

The method of allocating below-market-rent apartments significantly influences the distributional outcomes of rent control policies. While queuing systems may appear fairer than allocation based on landlord preferences, they tend to disadvantage younger households. Using data on more than 71,000 rental contracts allocated through Stockholm’s housing queue between 2003 and 2023, two main patterns are documented. First, the age composition of new tenants has shifted markedly as average queue times have increased. In the city centre, the share of leases allocated to tenants aged 18–30 declined from 12.7% in 2003 to 4.4% in 2023, while the share allocated to tenants aged 60 and above increased from 4.9% to 22.2%. Second, older tenants systematically obtain lower regulated rents. Based on multivariate estimates, a 60-year-old tenant pays 5.2% lower rent per square metre than a 30-year-old tenant outside the city centre, with the corresponding difference increasing to 15.4% in central locations. By the end of the analysed period, these differences increased to 11.6% and 21.2%, respectively.