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Housing construction in Sweden predicted to slow 'drastically'

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Housing construction in Sweden predicted to slow 'drastically'
Construction is predicted to slow down in Sweden. Photo: Jonas Ekströmer/TT
07:14 CET+01:00
The rate of construction of new homes in Sweden is expected to fall significantly in the coming years, dropping from 55,000 new buildings in 2018 to 46,000 in 2019.

That's according to industry organization the Swedish Construction Federation's economic forecasts, which suggest a decline of just over 30 percent from the peak in 2017.

In its report, the federation warned that credit restrictions like tightened amortization requirements could accelerate a downturn.

"It's starting to reduce very drastically now," Swedish Construction Federation CEO Catharina Emlsäter-Svärd said.

The predicted slow-down comes despite the persisting problems with finding housing in Sweden's biggest cities.

"Many people are still experiencing a housing shortage, especially households with a poorer economic situation," Elmsäter-Svärd noted.

On the other hand the report highlights a positive trend when it comes to construction investment in public spaces an infrastructure like railways and hospitals, which is predicted to increase by 11 percent between 2018 and 2019.

It's not the first time alarm bells have sounded about Swedish construction. According to the National Board of Housing, Building and Planning (Boverket), the 12-month rate for starting new builds already levelled out in the autumn.

IN DEPTH: The story of Sweden's housing crisis

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