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Demographics & Society

Inquiry · Housing

The housing shortage — a self-inflicted queue?

Stockholm's housing agency placed 20,424 flats in 2024. Average waiting time for an ordinary rental flat was 8.8 years. 857,335 people were in the queue at year-end. That is data — not the whole causal picture.

8.8 years

Average waiting time for an ordinary rental flat via Stockholm's housing agency (2024). 857,335 people in the queue at year-end. Actual outcomes vary — some flats require months, others 20+ years.

Two questions often conflated

1. How big is the queue? — measurable, reported by Bostadsförmedlingen. 2. Is it because of rent control? — partly interpretation. Mainstream economics tends to assign part of the blame to rent regulation, but several other factors (construction pace, interest rates, planning law) also matter.

Stockholm — average waiting time for a first-hand contract

Waiting time rose until the pandemic and has fallen slightly since, while the number of placements has grown. Values cover ordinary rental flats (not youth, student or senior housing).

Source: Bostadsförmedlingen Stockholm — Summary of the Year (annual statistics 2014–2024).

Demand vs actual construction

Boverket estimates Sweden needs roughly 50,000 new dwellings per year through 2035 to meet demand. In 2025 only 31,359 were completed — levels last seen before the 2015 migration wave. Higher rates and construction costs have reversed the trend.

Note: SCB completion figures cover rentals, condominiums and single-family houses combined. 2024–2025 are preliminary.

Source: Boverket housing-needs assessment (June 2024) + SCB BO0101 New construction of dwellings.

Housing allowance is shrinking

State spending on housing allowance has halved in real terms since the mid-1990s peak. The share of households receiving it fell from ~14 % to ~3 %. The cause isn't reduced need — the income and rent thresholds simply haven't been indexed to inflation, so young people and families with children no longer qualify.

Show data as table
YearNominalReal terms (2025)
19959.8 bn SEK16.17 bn SEK
19979.5 bn SEK15.53 bn SEK
20006 bn SEK9.68 bn SEK
20054 bn SEK6 bn SEK
20103.5 bn SEK4.85 bn SEK
20154.6 bn SEK6.17 bn SEK
20194.3 bn SEK5.41 bn SEK
20204.6 bn SEK5.75 bn SEK
20215 bn SEK6.11 bn SEK
20225.4 bn SEK6.1 bn SEK
20235 bn SEK5.21 bn SEK
20244 bn SEK4.05 bn SEK
20253 bn SEK3 bn SEK

Note: The temporary supplementary allowance for families (2020–2025, pandemic + inflation response) is included. Without it the decline would be steeper.

Source: ESV — outcome budget area 12, appropriation 1:8 + Försäkringskassan annual statistics.

Share of households receiving housing allowance

The construction-cost gap

Until around 2000 construction costs tracked general inflation. Since then a gap has opened — the building cost index has risen almost twice as fast as CPI. Building a new flat today is, in real terms, more expensive than ever measured.

Note: BKI = factor price index for multi-family housing (excl. wage drift), rebased to 2000 = 100. CPI rebased to the same year. 2025 preliminary.

Source: SCB BO0201 Building cost index + SCB CPI annual average (1980=100).

Distribution of housing costs

Low-income households spend up to 3x as much of their disposable income on housing as high earners. The gap is widest in the rental sector — where the allowance has shrunk the most.

Note: Share of disposable income spent on housing, by income decile and tenure form. Single-person households without children, for comparability across deciles.

Source: SCB Households' housing 2023 (HE0111).

Rent control — two sides

The case for

The bruksvärde system protects existing tenants from rapid rent increases and gives housing the character of a right rather than a commodity. Advocates point to predictability, mixed neighbourhoods and protection for low-income tenants with existing contracts.

The critique

A broad economic literature (Fiscal Policy Council, IFN, Boverket) points to below-market regulated rents creating queues, black markets, lock-in and weaker incentives to build rental housing. Counter-views exist — magnitudes are debated.

Housing shortage has several causes

Boverket consistently highlights several interacting factors: construction pace 1990–2010, long planning processes under the Planning and Building Act, high construction costs, interest rates, and population growth in big cities. Rent control is one variable among several — not the whole explanation.

What the data does NOT say

  • Waiting time doesn't measure the whole housing market. The secondary market, condominiums and owned housing fall outside.
  • The waiting time is an average over very different flats — from 0 years (low-demand) to 20+ years (city centre).
  • A slight drop since 2020 doesn't mean the shortage is solved — only that placements have risen.
  • The link between rent control and the queue is empirically established but quantitatively debated.

See also