Stockholm

In Stockholm, the housing market is split between rentals and owner-occupied homes, with rentals dominating due to high demand and limited supply. As of 2025, the majority of residents rent their homes, although ownership is growing in suburban areas. Rental prices have increased by 3-7% across various segments, with a 2-bedroom apartment in the central district averaging around €1,400 per month.

The median price per square meter to rent an apartment in Stockholm is approximately €35-€50, while the median buying price is significantly higher, around €5,000-€7,000 per square meter. Publicly owned housing, managed by municipal housing companies, plays a significant role in the city, providing universal housing without targeting specific income groups. This differs from social housing, which is often means-tested and targeted at low-income households. In Stockholm, public housing is not the same as social housing; it serves the entire population, not just those in need. Despite its universal nature, public housing faces challenges, including a shift towards well-off households and decreased stock availability.

Stockholm faces a significant housing crisis characterized by severe supply shortages, elevated prices, and prolonged waiting times that affect residents across all income levels.

Market Imbalances and Price Pressures

Housing prices in Stockholm have experienced extreme volatility, with a dramatic 90% surge between 2012-2021 followed by sharp corrections. As of 2025, average house prices reached €637,729, while apartments offer rental yields averaging 4.23%. The city maintains elevated inventory levels with record-high unsold properties, yet demand consistently outpaces supply.

Affected Population Groups

The crisis impacts virtually all demographic segments, though with varying severity. Young professionals and students face particular challenges accessing affordable housing, while middle-income households struggle with homeownership despite stable employment. Even higher-income residents experience difficulties, as properties take approximately 28 days to sell compared to historical norms, indicating market stress across price segments.

Supply and Demand Dynamics

Construction activity has declined significantly, with only 6,640 housing units started in Q2 2025, exacerbating supply constraints. Office vacancy rates reached 14.8%, yet residential shortages persist. The combination of high household debt ratios at 151% of gross income, elevated mortgage rates, and cautious buyer sentiment creates a complex market where both renters and potential homeowners struggle to secure appropriate housing.

This crisis transcends traditional low-income housing issues, representing a systemic challenge affecting Stockholm's entire residential market and limiting mobility across all socioeconomic groups.

Stockholm’s city administration addresses affordable and sustainable housing through a combination of ambitious urban planning, incentive programs, and regulatory measures. The city’s current strategy is defined in its City Plan, built on the principle of “Homes for all” and the long-term vision “Stockholm 2040 – a city for everyone.” This aims to create mixed, socially cohesive districts and integrate sustainability in all new developments.

Recent targets include accelerating the construction of new homes, particularly in expanding districts and through densification of urban centers. Stockholm aims to add tens of thousands of homes over the next decade, prioritizing eco-friendly design and proximity to public transit. Key sustainability objectives include increasing the share of energy-efficient buildings, integrating renewable energy (notably solar), and ensuring high standards for environmental performance in new projects.

To achieve this, Stockholm deploys concrete programs such as offering incentives for sustainable construction (including financial support for energy-efficient upgrades), expanding fully furnished and flexible rental options, and promoting new developments in emerging neighborhoods. There is also emphasis on affordable rental models and increasing the student housing stock. Publicly owned housing companies are required to prioritize sustainability in renovations and new builds. The city supports pilot projects implementing smart home technologies, improved storage solutions, and green mobility to make new and existing housing both affordable and sustainable.

Housing cooperatives (bostadsrättsföreningar) play an essential role in Stockholm’s housing market, forming one of the largest sectors of owner-occupied homes. In 2024, there were about 94,639 cooperative housing apartments registered in Stockholm County, managed by more than 760 associations. This sector represents a significant share of all owner-occupied dwellings, though rental housing still dominates the market.

The recent development of the cooperative housing sector has been marked by economic pressures: maintenance fee increases (up nearly 9% last year), heightened energy and operating costs, and a low level of financial saving within associations. These pressures contributed to a notable rise in insolvencies, with 117 housing cooperatives declared bankrupt in 2024—a threefold increase compared to previous years. Key challenges include adapting to elevated interest rates and maintaining reserves for necessary repairs, with current savings levels at only half of recommended standards.

Stockholm’s policies to promote cooperative housing include partnerships with key actors like HSB, regulatory guidance, and public information campaigns aimed at making cooperative housing more transparent and financially sustainable. City programs encourage responsible financial planning within associations and emphasize the need for long-term savings to protect members. However, with rising costs and more bankruptcies, sustaining the stability and affordability of cooperative housing remains a priority for future policy development.