Nineties babies face major housing shortage

As they start to leave the nest, children of the nineties will face an ever-increasing housing shortage, according to a new study by the Swedish Union Of Tenants. At the same time, business daily Dagens Industri (DI) reports that housing construction is at a record low.

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An additional 128,000 apartments are needed for the 216,000 young people in Sweden who are looking for their own housing. This is an increase of almost 30,000 since 1997, according to a study on young people's housing in 2009 from the Swedish Union Of Tenants (Hyresgästföreningen).

The results also show that more and more young people are living with their parents. Almost a fifth, 21 percent or 189,000 of those aged 20-27 live with their parents. This is an increase of 5 percent, or 49,000, since 1997.

The study also reveals that fewer young people have their own accommodation. Around half (57 percent) of the 914,000 young adults ages 20-27 have a first-hand rental contract or own their own apartment or villa, a decrease of around 6 percent, or 54,000, since the first study was done in 1997.

“The housing shortage among young people is a major problem. And the problem will continue to grow. In a year, those born in the 1990s will be knocking on the door of the housing market. A generation with many more than those born in the 1980s,” said Sven Bergenstråhle, a housing researcher at the Swedish Union Of Tenants.

“The study shows that significantly more housing needs to be built. Despite that, construction is decreasing. Young people lacking their own accommodation, and those who are planning to move, are demanding first and foremost rentals,” Bergenstråhle emphasized.

Dagens Industri reported that due to the recession, housing construction is at a record low.

“Even if the number of building permits is quite high, we expect many projects will be put on hold,” Hans-Åke Palmgren, an analyst at the National Board of Housing, Building and Planning (Boverket), told DI.

Boverket estimates that the number of new residences this year will be 15,000, and in 2010 the number could increase to 16,5000, which are the lowest levels during the entire 2000s.