The Tenants' Association, Byggnads, jagvillhabostad.nu in Sydsvenskan

Debate in Sydsvenskan

This week, the government presented its fall budget, which contained anything but good news for those of us hoping for measures for housing construction. Today, our union chairman Alexander Wilson van Deurs, together with Marie Linder, chairman of the Swedish Union of Tenants and Johan Lindholm, chairman of Byggnads, writes in Sydsvenskan and calls on the government to take a crisis perspective.

The housing shortage is a crisis that threatens the whole society

The government has now presented its autumn budget, and for many young people, tenants and actors in the construction industry, the news came as a cold shower. The construction crisis is a fact. The fact that the government has no crisis vision or measures in this budget to increase housing construction is extremely worrying.

Housing construction is falling sharply across the country, down 57% in the first half of the year compared to last year. At the same time, 9 out of 10 Swedes already live in a municipality with a housing shortage. In this situation, the government chooses not to include any support in the budget to boost housing construction, which is a disaster that will have far-reaching consequences for the whole of society.

The housing shortage has plagued Sweden for decades. Many young adults and families are struggling to find a home that fits their wallet. This shortage not only leads to higher housing prices and increased financial stress for young people, but it also hinders the development of society. Students, young professionals and even established families are forced to live in temporary and unstable accommodation.

We also risk a brain drain from the construction industry. A whole generation of construction workers could be missing when the economy picks up again and construction projects get underway. Unemployment risks rising outside the construction sector too, as one construction worker creates work for three more people.

A high and stable level of housing construction is needed to tackle the housing shortage. However, instead of supporting the construction industry and encouraging increased production of new homes, the government has chosen to extend the renovation deduction for private individuals in the owned housing. Such a measure will not address either the housing shortage or the construction freeze, but instead increases the inequality between owned and rented housing.

In fact, according to forecasts, the government is spending SEK 20,000 per household on owner-occupied housing in this budget. While they are only spending SEK 2,700 per household in rental housing.

The government now needs to reassess its priorities and address the major societal problem posed by the construction crash.

That's why we want the government to actively act in a recession and maintain housing construction through affordable construction loans, like neighboring Finland. When market interest rates rise and prevent construction projects from starting, the government steps in with loans at lower interest rates, while demanding lower rents. This policy ensures a high and steady pace of construction and should be followed immediately by the Swedish government.

The extraordinary situation also calls for the reintroduction of investment aid for the construction of rental and student housing. The subsidy allowed tens of thousands more homes to be built, and at lower rents. Abolishing the investment subsidy will make the crisis worse. A combination of affordable loans and investment support can get us out of it.

The government must immediately understand the seriousness of the situation and allocate resources to housing construction. Incentives are needed to attract investment and make it easier for construction companies to produce more homes.

The housing shortage is not just a problem for those struggling to find a place to live, it is a crisis that will affect the whole of society and people for a long time to come.

Alexander Wilson van Deurs
President jagvillhabostad.nu

Marie Linder
President of the Swedish Tenants' Association

Johan Lindholm
President of Byggnads

The article was published on 2023-09-23 and is available here.