In this study, we use Energy Performance Certificate (EPC) information to investigate the effect of energy efficiency on the selling price of Swedish tenant-owned apartments. While there is a large body of literature on how energy efficiency affects the sales price of single-family houses, none has exclusively focused on tenant-owned apartments. For owners of tenant-owned apartments in Sweden, heating is for a large share included in the monthly fee paid to the tenant association, which usually does not change on a short-term basis. This raises the question whether homebuyers incentives for acquiring energy-efficient tenant-owned apartments are large enough to be capitalized into the prices. By hedonic models and matching methods, we found mixed results. In our most optimistic scenarios, tenant-owned apartments enclosed in energy-efficient buildings are sold with a premium of approximately 0.8 to 1.2% compared to apartments in non-efficient buildings. The results in this study are not robust to all model specifications and vary across regions. In comparison with recent studies using data for single-family houses in Sweden, our detected capitalization is smaller. Our results highlight a need for targeted measures if EPCs are to be fully capitalized in prices for all dwelling types in which buyers have different economic incentives for reducing their energy consumption.

This paper examines the quantile dependence between energy commodities (oil, coal, and natural gas) and the real housing returns of the nine US census divisions for the period 1991-2019. In contrast to the literature on the association between oil and housing markets, we contribute by studying the effect of additional commodities on the housing market returns. We use a cross-quantilogram and quantile regression approach and find regional variation in the impact of energy commodities on housing returns. The effect within the same region varies over the quantile distributions. In general, we observe that all energy commodities are negatively associated with real housing returns. Significant correlations are found more often when the oil and housing returns are in similar quantiles. Coal and natural gas show a stronger relationship with higher quantiles of housing returns. Further, the results for coal and natural gas remains relatively stable after controlling for macroeconomic variables.