Increased housing shortage in Stockholm

Stockholm | 2009-03-21 | 1 comment

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Shortage of housing in Stockholm.
Photo: Yanan Li - Stockholm Visitors
The population in Stockholm continues to rise. At the same time does the number of new housings drop. The development of new houses should be doubled in order to meet the demands, according to a study by the National Building Administration.

Last year the population increased with 32,000 people in the larger Stockholm area. During the same time started the construction of 6,800 new residences. But the number needed is actually 11,500, according to the calculations by the National Building Administration.

- We have a large net in-migration from abroad but also many moving to Stockholm from the rest of the country. Then we also have a demographic increase of youngsters who are about to reach the housing market, says Hans-Åke Palmgren, analyst at the National Building Administration, to newspaper Dagens Nyheter.

Most of all is there a shortage of rental apartments. Last year only 1,300 of them was built in larger Stockholm, a decrease with 58 per cent compared to the three earlier years. In half of all municipalities in the county there were not any rental apartments built at all in 2008.

- Rental apartments are important for getting in on the housing market. If the trend continues most of all younger people will have a hard time to get their own homes, says Hans-Åke Palmgren.

But also when it comes to self-contained houses and co-operative apartments the forecast shows a negative trend. The number of newly built co-operative apartments decreased with 39 per cent and self-contained houses with 30 per cent last year.

- There is a danger that this hinders the economic growth in the region. It may be harder to get sufficient manpower when they do not have any place to stay. If we get a crunch in the housing market it will have enormous effects on other sectors in society, Hans-Åke Palmgren says.

And so far there is not any light in the tunnel for Stockholm’s housing market. According to the predictions of the National Building Administration the construction of new housings has decreased thus far this year with 5,500 accommodations. A contributing factor is the labour market who now locks darker than for many years.


Last year the Stockholm area grow with 32,000 inhabitants. Of the increase in population there were just over 12,000 in excess of birth, 15,000 in-migration from abroad and 5,000 moving in from other areas in Sweden.

This year the population will reach 2 millions for the first time.

David Jonasson

Readers' comments

2009-04-26 19:38 Deks wrote:
That is the key, 15000 from abroad, and I bet that most of them are asylum seekers, not highly educated people. So yeah, spend a milion kr on each of them a year.

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