The great construction crisis

Three measures to boost cross-party
housing construction

In the debate on solutions to the construction crisis, few proposals have found support both in politics and among the industry's interest groups. We therefore propose three measures that we believe can garner support across party lines, but also within the industry.

Executive summary

Today, both the housing market and the construction industry in Sweden are in a crisis situation. 80% of Sweden's population lives in municipalities with a housing shortage, which particularly affects young adults, while housing construction in 2023 has already halved compared to the previous year and is at risk of decreasing even more.

Politicians and housing market interest groups are actively working to come up with solutions to the construction crisis, but often the solutions are far apart and the debate stops. Therefore, jagvillhabostad.nu proposes three measures that we believe can facilitate the construction of new housing and find broad support among parties and interest organizations.

We suggest:

A reduction in VAT on the construction of new homes to lower costs and facilitate more projects

That the directives to the state-owned bank SBAB or the state-owned venture capital company Almi Företagspartner are changed so that the financing of new housing projects is promoted through low interest rates on loans

Increasing the standard limit of government credit guarantees to facilitate the financing of new housing projects

The proposals aim to ensure that policies contribute to increasing housing construction and addressing the housing shortage in Sweden. The problems hampering housing construction are largely financial, and therefore effective measures are needed to ease the cost side, which the three proposals do.

To get a sense of the impact our proposals would have on housing construction, we also asked a number of large and small construction companies how they think the proposals would affect their ability to build more homes.

Conclusions