The municipal companies have continually produced housing over the years and, alongside private stakeholders, have constructed housing for all markets.

There is significant pressure within the Swedish housing market. Much of Sweden is facing a housing shortage, primarily in its metropolitan regions. Sweden has one of the highest levels of urbanisation in the EU.

The level of additional new homes has been very low, while population growth has been high and, according to forecasts, this will continue.

Sweden’s construction market suffers from very high prices, prices that from the mid-1990s have increased significantly more than general cost levels for society. Building a multi-dwelling building currently costs almost two and a half times more than it did in the mid-1990s, while other price trends were just over 30 per cent for the corresponding period.

According to statistics from Eurostat, construction prices in Sweden are the highest in the EU. It is approximately 70 per cent more expensive to build housing here than the European average. Only Norway and Switzerland have higher construction prices in Europe.