Significant Decline in Rental Housing Supply Across Sweden
Sweden's rental housing supply drops dramatically, with major cities seeing significant reductions in available apartments.
Key Points
- • Rental housing supply in Sweden has declined significantly, especially in major cities.
- • Stockholm reports a 20% decrease in rental listings, while Gothenburg and Malmö see 22% and 15% drops respectively.
- • The number of rental applications has decreased by 5% this spring compared to last year.
- • Government proposals may simplify leasing but have faced criticism for potentially driving up rents.
The rental housing market in Sweden is facing a dramatic decline, with a reported decrease in second-hand rentals throughout the country. New statistics indicate that in major cities like Stockholm, Gothenburg, and Malmö, the supply of rental apartments has significantly dwindled. The rental market is seeing almost 20% of listings disappear in Stockholm alone, while Gothenburg and Malmö are experiencing reductions of 22% and 15%, respectively.
According to a report by Qasa, a rental housing platform, this decline is largely influenced by recent changes in market conditions, including decreasing interest rates and a reluctance among potential renters to apply for available rentals. This spring, the number of people seeking rental apartments fell by 5% compared to the previous year, with approximately 124,754 active applications.
Despite the drop in available rentals, the market has not seen a corresponding increase in rental prices. In fact, rental costs have averaged a decrease of about 3% as of January, with median rents in large cities like Stockholm resting at 10,700 kronor for a one-bedroom apartment.
Further complicating the market is the government's proposal to simplify the rental process, potentially allowing individuals to lease out two properties at market rates without classification as a business activity. This change aims to increase the rental housing supply, but critics express concern that it could lead to higher rents and increased speculation in the housing market.
Communications Director Isabelle Purits from Qasa highlights that the shortage can be attributed to a cautious real estate market where fewer people are willing to rent out their properties. As the debate continues over proposed legal adjustments, responses from the housing community indicate a complex landscape ahead as both demand and supply adjust to ongoing market conditions.
With pressure mounting on housing associations and prices in first-hand markets still under scrutiny, the trajectory of Sweden's rental housing availability remains uncertain, with potential shifts on the horizon depending on legislative outcomes and market responses.