Sweden unveils initiatives to tackle housing sector challenges as prices rise

Sweden continues to face significant challenges within its housing sector. “The battle against inflation has been won, but we are still in a recession,” said Construction and Housing Minister Andreas Carlson during a press conference on Friday. Higher production costs have resulted in a decline in both the planning and completion of new housing projects, according to Carlson. “The situation remains quite tough,” he added.

On Friday, the government unveiled two initiatives aimed at reducing construction requirements for housing and assessing price transparency within the construction industry. The housing minister noted that there are numerous attic spaces that could be converted into apartments, but strict regulations have previously hindered this, a situation that will now be reviewed by the Swedish National Board of Housing, Building and Planning (Boverket).

“The requirements for accessibility have led to the necessity of installing elevators. In some buildings, this is physically unfeasible, and in others, the costs are prohibitively high,” Carlson explained. He also pointed out issues with office buildings that have “deep structures” that fail to meet daylight requirements.

To facilitate small house builders, the government aims to implement simplified regulations for construction and conversions, as well as reduce lead times in the building process and increase access to land for construction. “We want to enable more people to build small houses in Sweden,” said the minister, noting that small house construction has remained at a low level.

Carlson emphasized that there is inadequate competition in the construction sector, contributing to rising building costs. Therefore, the Competition Authority has been tasked with investigating price transparency and proposing measures to enhance it. “This means that buyers and end customers can make clearer demands to curb price increases, whether for new constructions or renovations,” he stated. The authority is expected to present its findings by November 2025.