Catharina Elmsäter-Svärd, CEO for the Swedish Construction Federation claims that at the current rate of construction only about half of the National Board of Housing, Building and Planning’s speculative goals will be met.
A current dip in construction rates has only served to exacerbate Sweden’s acute housing shortage, especially amongst youths. According to the Swedish Construction Federations own predictions the current rate of construction has decreased by 33% between 2017 and 2019, a trend that goes completely against what the market is asking for.
In a recent analysis by the National Board of Housing, Building and Planning 93 000 homes will need to be built annually until 2020 to match the nations demand for housing, and 51 000 homes will be needed annually between 2020 and 2025.
Much of the current uncertainty can be attributed a recent tightening of the requirements related to applying for mortgages, interest rates and loan amortization. Requirements that have hit first-time buyers exceptionally hard.
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