The company Rikshem AB has completed its very last building in the foreseeable future. This despite the fact that all apartments in the new building had about 10 tenants applying each.
According to Petter Jurdell, Rikshem’s commercial manager, the reason is that higher interest rates and increased construction costs make it impossible to build homes people can afford to live in.
– It’s the perfect storm. We are heading towards a total construction crash in all forms of housing, he says.
It is not just rental apartments that are no longer being built. Petter Jurdell says that people also do not want to buy new apartments because of the high interest rates, and the same applies to villas.
– We are not starting any more housing projects in the whole country, says Petter Jurdell.
“Giant slowdown” of construction
Also Johanna Frelin, CEO of Riksbyggen, testifies that her company has almost introduced a total stop on new construction. New projects have decreased by approximately 90 percent in the past two years.
– It’s a huge slowdown, she says.
She believes that even though we don’t notice any major difference now, we won’t see more construction cranes over Swedish cities from this spring.
– This slowdown will be felt very clearly, very soon, says Johanna Frelin.
The most crowded in the Nordics
For all those who are looking for a home in Sweden, the situation will of course not improve if housing construction is put on hold.
Sweden has become the most overcrowded country in the Nordics, and families are forced to live in homes that are far too small because they cannot afford – or cannot get hold of – a better home.
In the clip, you hear father of five Yahya Muezzin from Norrköping tell how his family is struggling to find a home where everyone can fit.