High monthly costs put an end to Swedish mortgage dreams

Published 5 October 2024 at 10.44

Economy. Four out of ten Swedes, 41 percent, want to live larger than they do today. But despite the fact that the interest rate continues to fall, an equal proportion, 41 percent, of those who want to live larger respond that too high monthly costs prevent them from being able to move. This is according to a new survey from Verian.

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– The announced interest rate cuts make Swedes increasingly confident in changing homes as needed and the rate of bidding is higher than in a long time. But interest rates are still high and hit hardest against those with the least margins in the housing economy – young and first-time buyers, says Marcus Svanberg, CEO of Länsförsäkringar Fastighetsförmedling, which commissioned the survey.

Four out of ten Swedes, 41 percent, want to move to a larger home. The desire for more square meters of living space is greatest among young people – as many as 62 percent aged 18–29 state that they want to live larger than they do today. Even in the age group 30–49, there is a strong desire to move, where 56 percent would like to change to a larger home.

– Two out of three Swedes own their home, and in recent years both inflation and high interest rates have become difficult financial obstacles for many who would have actually had to move. The improved economic situation now makes Swedes increasingly confident in changing homes as needed, and hopefully more people can see their housing dream come true in the future, says Marcus Svanberg in a press release.

The main reason why Swedes do not move to a larger home, there is a risk that the housing costs would be too high. A full 41 percent who want to live larger state that as a reason. Two out of ten believe that the difficulty of finding a home that fits their needs makes them stay in their current home. Only 15 percent state concern about rising interest rates as an obstacle to moving.

– Halfway through the mandate period, we are now calling for concrete political promises on measures that can increase mobility on the housing market, so that more people can change homes as needed. The recent discussions about a reformulated amortization requirement are a concrete example that could make a big difference for many, says Marcus Svanberg.