## 3 Typology of the Building Stock, Market Segments and Economics of Refurbishing
### The Economics of Refurbishing
#### 3.1.4 Deep Renovations of Apartment Buildings of the 1960s and 1970s Exemplified
Gardenstensbostader uses balanced scorecards in decisions about their properties [38]. These scorecards include considerations for the well-being of their current tenants. Although, achieving energy savings was a concern [39] it was not the main objective with the renovations. Careful considerations of costs and a limited, fixed budget for energy efficiency measures was applied, and a policy of only carrying out maintenance and exchanging components where the technical lifespan would justify it were all imposed on the renovations [31]. Under the assumption of no energy price increases over inflation, the energy efficiency measures show positive results after 14 years [31] (Table 9). An interesting measure with which to compare these two examples is the cost per reduced kWh. For Brogarden, this cost amounts to 47 SEK/kWh (5.3 \(\mathrm{\SIUnitSymbolCelsius}\)/kWh) and for Gardsten 8 SEK/kWh (1 \(\mathrm{\SIUnitSymbolCelsius}\)/kWh). In Gardsten, rent levels were increased by an average of 7% after the renovations. Empirical studies seem to suggest that positive socio-economic benefits arose from the Gardsten renovation and that they have been sustained over time, the most significant being lower criminality and \begin{table}
\begin{tabular}{c c c c c c} \hline \hline
**Energy Consumption** & \multicolumn{2}{c}{**Reduction**} & \multicolumn{2}{c}{**Renovation Costs**} \\ \hline
**2008** & **2012** & **Reduction** & **Saved Energy** & **Total Costs** & **Costs** & **Costs** \\  & & **2008–2012** & **Costs/Year** & **SEK/sqm** & **SEK/Apartment** \\ \hline
216 & & & & 386 million & 19,800 SEK/m\({}^{2}\) & 1.28 million SEK \\ kWh/m\({}^{2}\)/year & & 60\% & & SEK or 44 & (2250 \(\mathrm{\SIUnitSymbolCelsius}\)/m\({}^{2}\)) & (145,000 \(\mathrm{\SIUnitSymbolCelsius}\)) \\ \hline Energy savings & & & & Hereof costs for & \\ \hline \multirow{2}{*}{200 SEK/sqm (23 \(\mathrm{\SIUnitSymbolCelsius}\)/m\({}^{2}\))} & & & & \\  & & & & energy retrofit & \\ \hline \hline \end{tabular}
\end{table} 
Table 8: Brogarden renovation of 300 apartments or 19,500 m\({}^{2}\) 2008–2012. Source: \(\mathrm{\SIUnitSymbolCelsius}\) Infrastructure (2012) [31]. \begin{table}
\begin{tabular}{c c c c c c} \hline \hline
**Energy Consumption** & \multicolumn{2}{c}{**Reduction**} & \multicolumn{2}{c}{**Renovation Costs**} \\ \hline
**1998** & **2000** & **Reduction** & **Saved Energy** & **Total costs** & **Costs SEK/sqm** & **Costs SEK** \\  & & **1998–2000** & **Costs/Year** & **Total costs** & **Costs SEK/sqm** & **/apartment** \\ \hline
274 & 164 & & & 105 million SEK & 5615 SEK/m\({}^{2}\) & 412,000 SEK \\ kWh/m\({}^{2}\) & kWh/m\({}^{2}\) & Approx. 40\% & & (nearly 12 million \(\mathrm{\SIUnitSymbolCelsius}\)) & (638 \(\mathrm{\SIUnitSymbolCelsius}\)/m\({}^{2}\)) & (47 000 \(\mathrm{\SIUnitSymbolCelsius}\)) \\ \hline Energy savings & & & & & Hereof costs for & \\ \hline \hline \end{tabular}
\end{table} 
Table 9: Garden Renovation of 255 Apartments or 18,700 m\({}^{2}\), 1998–2000. Source: \(\mathrm{\SIUnitSymbolCelsius}\)/\(\mathrm{\SIUnitSymbolCelsius}\) Infrastructure (2012) [31]. higher employment rates in the tenant population [40,41]. A 2009 study suggests the willingness to undertake deep renovations, in particular with high energy ambitions, is significantly larger in municipal housing companies relative to private housing companies [29]. The study argues that this suggests such renovations are simply not economically profitable. EXAMPLE Langkzerparken, Tilst, Denmark  
Costs of deep renovations are illustrated by an example of a large scale deep renovation of in total 860 apartments in 35 housing blocks in 3-storeys built 1969-1971 with prefabricated concrete elements, \"Langkzerparken\" located in Tilst close by Aarhus, Denmark.