Sweden

Sweden’s housing crisis is shaped by a persistent shortage, soaring demand, and worsening affordability across much of the country—particularly acute in major cities like Stockholm, Gothenburg, and Malmö. The estimated national housing deficit is about 160,000 homes, with a need for an additional 250,000 by 2030. Over 255 of Sweden’s 290 municipalities are currently experiencing a shortage. Steep property prices and rents, coupled with high construction costs and strict building regulations, have made housing less accessible, especially for younger people, single parents, and immigrants. Households spend a growing share of their disposable income on housing. Many are stuck in long waitlists for regulated rental apartments, while others face barriers in entering the regular rental market due to new, stricter income requirements. Homelessness is rising, with at least 33,000 people homeless and over 24,000 children affected. About 43% of those homeless were born outside Sweden, and low-income groups, newly arrived refugees, and young adults face the highest risk of exclusion from housing. In Stockholm alone, at least 80,000 people with very low incomes urgently need housing. People are increasingly forced into insecure, short-term, or secondary rental arrangements. Rising migration, rapid urbanization, and slow pace of new construction all compound the crisis, deepening socioeconomic and ethnic segregation in Sweden’s housing landscape.

The Swedish government is tackling affordable and sustainable housing mainly through partnership-driven programs, targeted subsidies, and a universal housing policy. Recent government strategies prioritize supporting vulnerable groups, increasing energy efficiency, and responding to acute regional needs. A key initiative is the national homelessness strategy 2022–2026, which officially backs the broad rollout of Housing First programs across Sweden. Central government funding is allocated to train municipalities and implement Housing First, prioritizing stable homes as a foundation for social inclusion. There are also city-specific expansions, such as youth-focused Housing First in Gothenburg. For sustainable and affordable housing, Sweden is leveraging EU support mechanisms. The SHERIS project in Skellefteå, backed by EUR 142 million (including an EUR 11 million EU grant and an EUR 71 million European Investment Bank loan), aims to provide about 750 energy-efficient housing units. Half are reserved for students, while around 20% are for social leasing contracts targeting low-income households, refugees, and those with special needs, supporting inclusive community development and the goal to become climate neutral by 2030. At the policy level, Sweden is navigating between maintaining its universal housing system and introducing selective reforms. This includes proposed reforms to supply-side subsidies, housing allowance adjustments, and distribution system changes—such as introducing priority routes to access public housing over the traditional waitlist system. Despite political debate over construction goals (targeting around 700,000 new homes in a decade), there is agreement on the need to accelerate both private and public sector building.

Housing cooperatives, or tenant-owner associations, make up about 22–23% of Sweden’s total housing stock—by far the highest per capita in Europe. This sector has expanded rapidly over the past decades due to market inefficiencies in rent-controlled rentals and limited new construction in both the rental and private ownership sectors. Cooperative housing is most prevalent in urban areas, with major national organizations like HSB and Riksbyggen leading development and management. Together, these organizations serve hundreds of thousands of members and manage a significant share of the country’s cooperative apartments. Swedish cooperative housing functions via resident-owned associations where members buy a share, granting them the right to use a dwelling and participate democratically in management. These dwellings can be sold on the open market, and are in high demand, especially in growing regions. Recent years have seen economic challenges for cooperatives. Rising interest rates, inflation, and increased association bankruptcies have pressured the sector, but interest in cooperative housing remains strong due to ongoing affordability issues and long rental queues in cities. National policy promotes cooperative housing indirectly. The universal approach to housing—rather than means-tested social housing—favours a mixed-tenure landscape and allows housing cooperatives to thrive. However, there are no major, direct national programs specifically targeting cooperatives. Instead, support comes through general housing market policies, financial institutions, and regulatory frameworks that enable cooperative growth and provide stability through legal and financial supervision.

Sweden’s housing market is in a modest recovery in 2025, with national house prices rising about 2.9–3% year-on-year after a sharp correction from 2022–2023. Nationally, the average price to buy an apartment is approximately €228,000, or roughly €2,600–€3,000 per square meter depending on the region, while Stockholm stands out at about €7,700–€9,700 per square meter. The median rental price per square meter in major cities varies widely, but typical figures for renting range between €20–€30 per square meter monthly in urban centers, though accurate countrywide medians are not universally reported due to strong regional differences. About 64.8% of Swedes own their homes, while 35.2% rent, though this varies by city and region. Publicly owned housing, managed by municipal housing companies (MHCs), is a universal system open to all, not just low-income households—this is a key difference from traditional social housing found in other countries, which often requires means-testing. Public housing makes up a significant share of the rental market, roughly 18% of the total housing stock, compared to about 17% for private rentals; the rest is owner-occupied or cooperative. Public housing remains a pillar of Sweden’s housing policy, aimed at providing good housing for all residents, but as in the private sector, rents and queues have risen due to high demand and limited new construction. The Swedish housing market continues to face pressure from affordability issues and long rental queues, despite recent stabilization and moderate price growth. Public housing is distinct from social housing, as it is non-means-tested and universally accessible, in contrast to systems that target only the less well-off.