Next Article in Journal
Identification of Core Suppliers Based on E-Invoice Data Using Supervised Machine Learning
Next Article in Special Issue
Capital Allocation in Decentralized Businesses
Previous Article in Journal
Book Review for “Credit Default Swap Markets in the Global Economy” by Go Tamakoshi and Shigeyuki Hamori. Routledge: Oxford, UK, 2018; ISBN: 9781138244726
Previous Article in Special Issue
Insider Trading and Institutional Holdings in Seasoned Equity Offerings
Article Menu

Export Article

Open AccessArticle
J. Risk Financial Manag. 2018, 11(4), 69;

Risk Assessment of Housing Market Segments: The Lender’s Perspective

Royal Institute of Technology (KTH), Department of Real Estate and Construction Management, S-100 44 Stockholm, Sweden
Department of Civil of Engineering, Aalto University, 02130 Espoo, Finland
Author to whom correspondence should be addressed.
Received: 30 August 2018 / Revised: 8 October 2018 / Accepted: 14 October 2018 / Published: 26 October 2018
(This article belongs to the Special Issue Risk Analysis and Portfolio Modelling)
Full-Text   |   PDF [1066 KB, uploaded 26 October 2018]   |  


It is well known that risk factors influence how investment portfolios perform from a lender’s perspective; therefore, a thorough risk assessment of the housing market is vital. The aim of this paper was to analyze the risks from housing apartments in different housing market segments by using the Stockholm, Sweden, owner-occupied apartment market as a case study. By applying quantitative and systems engineering methods, we (1) established the relationship between the overall housing market and several housing market segments, (2) analyzed the results from the quantitative model, and (3) finally provided a feasible portfolio regarding risk control based on the given data. The goal was to determine how different housing segment factors could reveal risk towards the overall market and offer better outlooks for risk management when it comes to housing apartments. The results indicated that the risk could be reduced at the same time as the return increased. From a lender’s perspective, this could reduce the overall risk. View Full-Text
Keywords: mortgage portfolio; housing segments; risk assessment; hedonic modeling; analytic hierarchy process mortgage portfolio; housing segments; risk assessment; hedonic modeling; analytic hierarchy process

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Wilhelmsson, M.; Zhao, J. Risk Assessment of Housing Market Segments: The Lender’s Perspective. J. Risk Financial Manag. 2018, 11, 69.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
J. Risk Financial Manag. EISSN 1911-8074 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top