Swedish Housing Market Sees Modest Price Growth in 2025 Amid Regional Variations, Construction Sector Outlook Improves in 2026

The Swedish housing market experienced a subdued year in 2025, with apartment prices rising by just 1.4 percent and villa prices increasing slightly more at 2.1 percent, according to new data from Hemnet. This modest growth masks significant regional disparities in price development, suggesting that local market conditions vary widely across Sweden.

Despite the slow price increases last year, the construction sector shows signs of recovery going into 2026. Industry insights highlight an end to the previous downturn, with improvements in the building economy signaling a strengthening construction market.

Björn Rundström, editor-in-chief at Byggindustrin and responsible publisher from Fastighetsnytt Förlags AB based in Stockholm, has noted the renewed optimism within the construction sector. The industry’s improved outlook could positively impact housing availability and market dynamics moving forward.

While 2025 was challenging for the housing market, these developments suggest a cautiously optimistic start to 2026 for both housing prices and construction activity in Sweden. Continued monitoring of regional variations and construction trends will be important as the market seeks stabilization.