Hammarslagen are becoming fewer and fewer in Sweden.
According to new figures, housing construction has stalled and is now approaching the low levels of the 1990s crisis.
– We have to build a lot of new housing, says Robert Boije, chief economist at SBAB.
The decline is noticeable in many Swedish municipalities as fewer and fewer building permit applications are submitted. In Umeå, for example, only 333 applications have been submitted so far this year.
A worrying development, according to assessors at the bank SBAB.
– We would have to build around 35,000 homes per year just to keep up with population growth. If we then add the current housing shortage, we probably need 45,000 housing units per year to eliminate that shortage within a reasonable time, says Robert Boije, chief economist at SBAB.
On the way to record lows
During the first quarter of this year, approximately 8,300 new constructions were recorded, which is halved compared to the same period last year.
According to SBAB, there are indications that construction will decrease even more in the autumn, and in the worst case may reach the record low that was during the financial crisis in the 1990s.
Threatens development in many locations
SBAB believes that the housing shortage is a serious threat to the labor market and development in many localities. Housing construction is an important driving force for the economy, and creates employment in various sectors.
If construction is reduced drastically, it could have negative consequences for the labor market and lead to economic instability in several regions, according to SBAB.
– We also have the climate change to take into account, which means that we have to build a lot of new housing in cities like Skellefteå, where a large battery factory is located and the need for housing for a migrant workforce is urgent, says Robert Boije.