Published 21 May 2024 at 14.43
Economics. High costs and uncertainty slow down housing construction – but a slight upward turn is expected in 2025. This is shown in the Housing Authority's construction forecast from May 2024.
Share the article
TwittraShare
– With a lowering of the key interest rate, expectations of increased purchasing power and a lower degree of uncertainty in the economy as a whole, all speak volumes for the fact that we have now reached the bottom for housing construction. But it is still a strained situation and some factors need to be sorted out before housing construction can start again, says Oskar Gramstad, national economist at the Swedish Housing Agency.
The Swedish Housing Agency's assessment is that around 27,000 homes will be started this year, of which 25,000 through new construction and 2,000 through renovations. This is a decrease of approximately 16 percent compared to the previous year. The forecast for the year 2025 is that housing construction will pick up slightly, and that approximately 32,000 homes will be started, of which 30,000 will be new construction.
Despite positive trends, the market is still characterized by high interest rates and high construction costs, which means that the rate of increase will be low.
– It is positive that we see signs of a turnaround for housing construction. But it is important to remember that we are still far from the levels that we have seen are needed, says Anders Sjelvgren, Director General of the Housing Authority, in a press release.
The number of completed homes will decrease significantly from this year onwards. Last year, approximately 69,000 homes were completed, including net additions through remodeling according to Statistics Sweden. Starting this year, our forecast is that the number will fall to around 40,000 homes, and in 2025 slightly more than 25,000 homes will be completed.