Strongly reduced housing construction is causing it for young people

The collapse in apartment prices has made it a little easier for young people to enter the housing market, but the next problem awaits around the corner: Housing construction is drastically decreasing.
– In 2021 we had a surplus in relation to the need, in 2023 we will have a deficit, says Arvid Krönmark, CEO of Skandiabanken.

Now Skandiabanken releases its recurring report on the housing situation of young people. The report gives a partly gloomy picture of young people’s opportunities to establish themselves in the housing market, and it risks getting worse.

2023 a problematic year

The price collapse in the housing market has created an opportunity for young people who want to enter the housing market, but the greatly reduced housing construction is a cloud of worry for the future.

– In the long run, it will lead to the price level possibly being higher than it would otherwise be, because we get a lower supply of housing, says Skandiabanken’s CEO Arvid Krönmark in Nyhetsmorgon.

Statistics from the Housing Authority and Skandia show that 71,500 new homes were built in 2021, the forecast for 2023 is 45,000. In 2021 we were at a plus in relation to the need, but this year we end up at a minus, according to the forecast.

Statistics on housing construction in relation to need

Statistics on housing construction in relation to need

– It is very serious and alarming, I would say. 2023 is a problematic year for housing construction in Sweden, says Arvid Krönmark.

“There isn’t ONE quickfix”

Housing Minister Andreas Carlsson (KD) agrees that the reduced construction is a problem.

– Housing construction has a big impact on the economy as a whole and that is why you need to tackle the problems that have existed for a long time. There are no shortcuts, unfortunately, but you need to do solid work, says the housing minister in Nyhetsmorgon.

He mentions measures such as shortening lead times for construction, getting better access to buildable land and improving the regulations to make construction less complicated.

– There is not ONE quick fix to solve the problems in the Swedish housing market, but the government has already pointed out a direction on which reforms should be developed. You can say that this should have been done a long time ago, and I can agree with that, but work all the harder now, he says.

17:48

Young people’s housing situation is at risk of getting worse: “It takes a toll”

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