Swedish Housing Prices Decline Amidst Economic Concerns
Sweden's housing market sees a 0.7% decline in prices, driven mainly by a 2.6% drop in apartments.
Key Points
- • Overall housing prices fell by 0.7% in July 2025.
- • Apartment prices decreased by 2.6%, especially in urban areas.
- • Single-family home prices saw a slight increase of 0.2%.
- • Experts predict further declines in apartment prices through 2025.
In July 2025, housing prices in Sweden experienced a notable decline, with an overall drop of 0.7%. This reduction was primarily driven by a sharp 2.6% decrease in apartment prices, according to reports from SBAB. The most significant drops were recorded in urban regions, particularly Storgöteborg and Storstockholm, which saw apartment prices fall by 4% and 3.4%, respectively. Meanwhile, single-family home prices showed a slight increase of 0.2%.
Robert Boije, Chief Economist at SBAB, expressed concern over the ongoing fall in apartment prices, suggesting that the sharp declines could lead to housing cooperatives needing to raise fees, potentially exacerbating the market's challenges. He noted that the transaction volume for apartments has plummeted sharply, unlike the market for single-family homes, which remains relatively stable. Experts predict that apartment prices could continue to decrease by around 3% by the end of the year, while single-family home prices are expected to stabilize.
The broader economic context includes warnings from Mark Zandi, Chief Economist at Moody's, who indicated that the US economy is nearing recession. While low unemployment rates persist, they are coupled with sluggish labor force growth due to reduced immigration and lower participation rates, which could influence the Swedish market given the interconnectedness of the global economy. Furthermore, political decisions such as increased import tariffs are impacting corporate profits and household purchasing power, adding to uncertainty in the housing market.