« Swedish housing policy stands out as uniquely weak »

Lately, new reports from The property owners and Sweden’s general benefit presented. Both reports give a picture of a divided housing market. While the municipalities in the countryside have rising vacancies, big cities continue to experience housing shortages.

The rising vacancies are a risk that deserves to be taken seriously. This is especially true for some smaller rural municipalities with a shrinking and aging population.

For those municipalities, where the local labor market is weak, households have chosen to move to apply for a job elsewhere. Finding alternative tenants is difficult. In these locations, local housing companies may suffer great financial losses. In the worst case, some properties may need to be demolished. Maybe these municipalities may need state help to handle the situation.

For Sweden as a whole, however, housing vacancies are not a major problem. According to the property owners, the vacancy rate in Sweden is on average to 1.3 percent. In the big cities, there is still an acute housing shortage. It is also here that most of the housing needs are.

Unfortunately, it speaks Most of the fact that the lack of housing in the big cities will increase further in the future. In recent years, household economy has been hard pressed due to high inflation and rising mortgage rates. At the same time, construction costs have shot the height.

Households’ more limited ability to demand housing in combination with the rising construction costs has meant that the number of housing projects started to record low levels. The absolute bottom point has now hopefully been passed, but probably the building volumes of housing will remain low at least during 2025 and 2026.

How really looks The availability of housing on reasonable conditions in Sweden? In one Report series from Danske Bank we have compared the housing social situation in the country with that in our Nordic neighboring countries.

Our comparative analysis of the Nordic housing markets shows that Sweden stands out. Compared to the other Nordic countries, we in Sweden have significantly fewer state support systems aimed at weaker groups. Therefore, we also have a structural homelessness and congestion that is multiple higher than it is in our Nordic neighboring countries.

Previous reports from the construction company Veidekke show the same picture. In one of the reports, Sweden – the worst in the classSwedish housing policy is compared with that in twelve equivalent countries, including Canada, Norway, Germany and Australia. This comparison also shows that Swedish housing policy stands out as uniquely weak and lacks ambitions regarding economically weak groups.

For a long time, Sweden was World leader in what is usually called « social housing policy ». This is now history. With the 1990s system shift, the framework conditions were fundamentally changed. The municipal housing companies will today be run according to business principles. Housing grants have been severely eroded. The financing of housing has been submitted to households and other players to manage themselves.

Seen in this light, it is not strange that household indebtedness has risen over the past 20 years. On the contrary, it is a direct consequence of the policy pursued – or rather, in the direct absence of a social housing policy.

In a mode with General housing shortages and increased income gaps have become increasingly difficult for weaker households to find a suitable home. According to The National Board of Health and Welfare’s latest measurement mapped over 27,000 people as urgent or temporarily homeless. In addition, there is an even greater hidden and structural homelessness that is not visible in the statistics but which still affects many more people.

These are large groups – everything from single parents and low -income pensioners to newly arrived immigrants without their own housing and young people who cannot get leases.

Young adults who are going to get their first home have also been difficult. This is especially true in growing towns. According to a report from Stockholm Chamber of Commerce Almost three of four young adults are closed out of the housing market in Stockholm. According to their calculations, only a minority of young adults in the Stockholm region has the income required to buy a home.

That we as a society cannot offer such a basic security as a home to all must be seen as a monumental failure

In the previous one The low interest rate environment was hidden some of the problems. Now that ever -larger groups are being closed out of the housing market, the cracks in the facade are becoming clearer.

Together with a dysfunctional rental market, it also gets follow -up effects for the companies’ skills supply. The structural social problems linked to the housing market are increasing and, in the long run, threatens the Swedish growth prospects.

That we as a society cannot offer such a basic security as a home to everyone must be seen as a monumental failure. A functioning housing market is a prerequisite for society as a whole to hold together. It is now high time to act and to formulate a modern response to a social housing policy in Sweden – a policy for weaker groups, family leaders and the elderly.

Our review From international examples, there is a treasure chest to pour out, only we are prepared to open ourselves to lessons from other countries. Our Nordic neighboring countries already have a number of well -established housing social support, which we can draw inspiration from, for example:

● Norway: Tax subsidized residents and targeted starting loans for new home buyers. A higher degree of market -based rent and large tax relief for second -hand rental.

● Finland: Directed production support for housing and more generous housing allowance to weaker groups. A higher degree of market -based rent.

● Denmark: Market -based pricing of mortgages with a higher degree of flexibility for households, including significantly longer interest rates than in Sweden. Separately regulated public benefit that enables a cost -based rental in this segment.

It is high time for our politicians to link funding, risks, housing construction and social needs to a whole

We experience that there is a great interest among different private actors to get involved in the housing social issues. In the bond market, new products such as social and sustainability -linked bonds have been added. A number of Swedish real estate companies have also established a framework for sustainable financing.

If the state is willing to put on the leadership jersey, private capital can be mobilized. It is high time for our politicians to link financing, risks, housing construction and social needs to a whole.

Together we can build the new Sweden – a Sweden that is once again best in the housing policy class.

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