Financialization the Swedish way: How Vonovia became the largest owner of former public housing estates through transaction pathways and calculative practices

The Swedish rental housing market has been in transition. The once dominating municipal public housing sector has been steadily decreasing. International firms have increasingly taken over rental housing in so-called socially deprived areas. This article analyzes the financialization of the former public housing stock. It traces activities in two housing estates and outlines the history and operations of venture capital-based real estate companies focusing on deprived areas in Sweden. These companies have upgraded multifamily homes and thus increased rents, which resulted in large profits and a decrease in the affordable housing stock. In this new reality, venture capital actors have taken advantage of contextual conditions and applied powerful calculative devices. Drawing on studies of financialization as a socio-technical process, the article contributes to knowledge by de-mystifying financialization through a detailed study of specific practices undertaken by international investors who acquire former public housing units in Sweden.