Swedish Housing Market Stabilizes in 2025 Amid Relaxed Mortgage Rules

Sweden's housing market saw a significant pause in price growth throughout 2025 following a robust increase in the previous year. According to Svensk mäklarstatistik data analyzed by SvD, housing prices, including both condominiums and single-family homes across Sweden and its major urban centers, remained stagnant during 2025 after rising by just over 5 percent in 2024.

This stabilization contrasts with the previous year's upward momentum, marking a notable shift in the market. At the same time, the Swedish government implemented measures easing mortgage lending requirements aimed at bolstering homeownership, particularly for families and first-time buyers. The relaxation is expected to provide families with children an additional 4,000 kronor in disposable income monthly, enhancing affordability. For first-time buyers targeting apartments in metropolitan areas, the required saving period for a down payment is projected to shorten by two to four years.

These policy changes are designed to alleviate financial pressure on buyers, particularly in cities where housing costs are higher, and to encourage more accessible entry into the housing market. While prices have held steady during 2025, experts anticipate a brighter outlook in the coming year as these measures take effect.

The dual developments of a temporarily paused price growth and eased borrowing constraints reflect both market caution and proactive governmental intervention to support sustainable housing affordability. The flat price trend underscores some market stabilization after previous rapid increases, while the mortgage reforms could stimulate demand and give prospective owners greater financial breathing room.

In summary, Sweden's housing market is navigating a period of price stagnation amidst policy-driven efforts to make homeownership more attainable. The combined effect of these factors suggests a cautiously optimistic scenario looking ahead into 2026.