House Prices in Sweden for 2024
Are you curious about the housing market in Sweden? House prices in Sweden are expected to fall by 13% in 2023, followed by a 1.5% increase this year.
The Swedish housing market has been on a rollercoaster ride in recent years, with rising interest rates and fluctuating prices. However, the market is expected to stabilize in the coming years, with a calm price development predicted for 2024.
What can we expect from the property market in Sweden in 2024? How will house prices be affected by the changing economic climate? Let’s explore these questions and more in this blog post. Today, we will discuss house prices in Sweden for 2024.
Also, read our guide about rent prices in Sweden.
How Much Does a House Cost in Sweden?
The average house price in Sweden varies significantly depending on the region, the type, and the size of the property. According to the statistics, the average price for a one- or two-dwelling building for permanent living was SEK 3.6 million (about USD 400,000) in 2022. However, this figure masks the large regional differences in the housing prices in Sweden.
For example, the average price for a one- or two-dwelling building in Stockholm County was SEK 7.1 million (about USD 790,000). Meanwhile, the average price in Norrbotten County was SEK 1.3 million (about USD 145,000).
The table below shows the average prices for one- and two-dwelling buildings in different regions of Sweden:
| County | Average price (SEK) | Average price (USD) |
|---|---|---|
| Stockholm County | 7,100,000 | 790,000 |
| Uppsala County | 4,600,000 | 512,000 |
| Södermanland County | 3,500,000 | 390,000 |
| Östergötland County | 3,200,000 | 356,000 |
| Jönköping County | 2,900,000 | 323,000 |
| Kronoberg County | 2,600,000 | 289,000 |
| Kalmar County | 2,500,000 | 278,000 |
| Gotland County | 3,100,000 | 345,000 |
| Blekinge County | 2,400,000 | 267,000 |
| Skåne County | 4,000,000 | 445,000 |
| Halland County | 4,100,000 | 456,000 |
| Västra Götaland County | 4,200,000 | 467,000 |
| Värmland County | 2,100,000 | 234,000 |
| Örebro County | 3,000,000 | 334,000 |
| Västmanland County | 3,300,000 | 367,000 |
| Dalarna County | 2,200,000 | 245,000 |
| Gävleborg County | 2,000,000 | 222,000 |
| Västernorrland County | 1,800,000 | 200,000 |
| Jämtland County | 2,300,000 | 256,000 |
| Västerbotten County | 2,400,000 | 267,000 |
| Norrbotten County | 1,300,000 | 145,000 |
The house prices in Sweden are generally higher in the southern and central parts of the country, especially in the metropolitan areas of Stockholm, Gothenburg and Malmö. The house prices in Sweden are lower in the northern and rural areas, where the population density and the demand for housing are lower.
Factors That Affect House Prices in Sweden
House prices in Sweden vary between regions due to several factors:
Income and Population Growth: Higher income and population growth boost housing demand, particularly in attractive regions with higher incomes.
Land Scarcity: In central metropolitan areas, high demand and limited land availability for new development can drive up house prices.
Construction Costs: In Sweden, construction costs have risen by 50%, outpacing similar countries due to capacity constraints, regulatory standards, and municipal building codes.
Competition in the Construction Sector: Weak competition in the Swedish construction sector may contribute to higher house prices.
Interest Rates: Increasing interest rates can result in lower house prices as borrowing costs rise, making home purchases less affordable.
Consumer Behavior: Rising prices of essentials like food, energy, and fuel may make consumers more cautious, leading to delays in home purchases.
Are you staying in Sweden wit Your Family? Learn more about cost of living in Sweden in our guide for families.
The Price Crisis and Its Impact on the Housing Market in 2024
The housing market in Sweden has been facing a price crisis since 2021, mainly due to the high inflation and the rising interest rates that have increased the cost of borrowing and reduced the purchasing power of households. The Ministry of Finance forecasted a 13 percent decline in Swedish house prices in 2023, with a subsequent 1.5 percent increase in 2024. The price crisis is expected to affect home prices and the housing market in different ways, depending on the region, the type, and the size of the property.
The price crisis is expected to have various impacts on the market of Swedish households:
Reduced Demand: The crisis is likely to decrease the demand for housing, especially for larger and more expensive properties. Households, constrained by tighter budgets and lower expectations of future price increases, will be less inclined to make such purchases.
Increased Supply: Homeowners may aim to sell their properties before prices fall further or to avoid the risk of negative equity. This surge in supply could contribute to property prices increase in available housing.
Price Adjustments: Expect prices of residential properties to adjust to lower demand and higher supply, exerting downward pressure on the average price. However, these adjustments will vary across regions, influenced by local economic conditions, interest rate sensitivity, and the availability of alternative housing.
Affordability Changes: Affordability will improve for some potential buyers, particularly those with sufficient savings, stable income, and low debt. Conversely, it may worsen for others with low income, high debt, and variable interest rates. Access to credit will become more challenging, with banks tightening lending standards and requiring higher down payments and lower loan-to-value ratios.
Market Volatility: Due to the price crisis, housing prices and the market are expected to become more volatile and uncertain. Fluctuations in property prices will be influenced by changes in inflation, interest rates, the economic outlook, and consumer confidence.
These impacts highlight the dynamic nature of the Swedish home prices, mortgage rates, and the property market, creating a landscape where fluctuations and changes in the market conditions play a significant role.
According to Dominika Polanska, Associate Professor of Sociology at Uppsala University, the housing shortage in Sweden is so severe that some are contemplating using shipping containers for apartments. She explains that the past few decades have been characterized by increasing privatization, resulting in a decreasing amount of rental housing.
Related article: Best Place For Living: The US vs Sweden
Available Types of Houses You Can Buy in Sweden
Sweden offers a variety of housing options for buyers, ranging from urban apartments to rural cottages. However, buying a house in Sweden is not a simple process, and it requires careful planning, research, and financing. Here’s what you need to know when buying a house in Sweden:
Types of housing
There were 5.2 million dwellings in Sweden. Among these, 41% were in one- or two-dwelling buildings, 52% were in multi-dwelling buildings, 5% were in special housing, and 2% were in other buildings. The type of housing also determines the type of ownership and tenure, which can be:
Owner-occupied: The buyer owns the property and the land, and pays a mortgage and maintenance costs. This is the most common type of ownership for one- or two-dwelling buildings.
Tenant-owned: The buyer owns a share of a cooperative association that owns the property and the land, and pays a monthly fee and a mortgage. This is the most common type of ownership for multi-dwelling buildings.
Rented: The buyer rents the property from a landlord and pays a monthly rent and a deposit. This is the least common type of tenure for one- or two-dwelling buildings and more common for multi-dwelling buildings.
Are you planning to stay in Stockholm? Read our article: Where to stay in Stockholm
Buying process
The buying process in Sweden involves several steps:
Search online or through agents for your dream home. Agents charge 3-5% commission.
Make a verbal offer to the seller, which is not final until you sign a contract. The seller can accept or reject your offer or get other offers.
Sign a contract with the seller, which is final and has the sale details. Pay a 10-20% deposit now and the rest later.
Hire an inspector to check the property and its legal status. Use the Swedish Land Registry for this.
Meet the seller at a bank on the transfer date. Pay the rest of the price and the stamp duty (1.5% or 4.25%, depending on the property type). Get the keys and the documents.
Some facts about the Swedish property market:
The market is cooling down after rising for the last decade. House prices fell by 13% in 2022.
The household sector has a high debt level, which makes it sensitive to interest rate changes.
Around half of the mortgages are financed with variable rates, and many others are on short-term fixed rates. This means that eventually, rates will go up and affect the payments.
The central bank bought mortgage bonds during the pandemic to lower rates and boost the market.
The average price per square meter for a house in Sweden was SEK 36,900 in 20213. This is about USD 4,300 or EUR 3,800 per square meter.
Do you need financial assistance when buying house in Sweden? Check our blog post: Best Banks in Sweden for Foreigners
Reviews of Expats Regarding Properties and House Prices in Sweden
Review 1: I moved to Stockholm from London last year and I was shocked by the house prices in Sweden. They are almost as high as in the UK, but the quality of the houses is much lower. The average house price in Sweden is around 44,545 SEK per square meter. In Stockholm, it’s even higher, about 62,918 SEK per square meter. I had to settle for a small apartment in the suburbs, which is still very expensive. I don’t think I’ll ever be able to afford a house in Sweden.
Review 2: I love living in Sweden. The housing prices in Sweden are reasonable compare it to other European countries, especially if you live outside the big cities. I bought a beautiful detached house in Härjedalen for 820,262 SEK. It has four rooms, three bedrooms, and a stunning view of the mountains. The house price in Sweden varies depending on the location, size, and condition of the property, but you can find some great deals if you look around.
Review 3: I came to Sweden from the US for work and I was pleasantly surprised by the Sweden house prices. They are much lower than in the US, especially in the rural areas. I rented a cozy cottage in Fäxhult for 6,600 SEK per month. It has a farm, a garden, and a fireplace. It’s almost exactly what I dreamed of. The square meter price is also very low, about 630 SEK. I’m thinking of buying a house in Sweden someday.
Review 4: I hate the house prices in Sweden. They are too high for what you get. I moved to Gothenburg from Berlin two years ago and I regret it. The average house price in Sweden is 44,545 SEK per square meter. In Gothenburg, it’s slightly lower, but the houses are old, small, and poorly insulated. The heating costs are also very high. I wish I could move back to Germany.
Review 5: I’m happy with the house prices in Sweden. They are fair and stable. I bought an apartment in Malmö from a friend for 2,500,000 SEK. It has three rooms, two bedrooms, and a balcony. The square meter price is about 25,000 SEK and it’is lower than the national average, which is good for me as a homeowner. I think Sweden is a great place to invest in real estate.
Are you planning to buy a car in Sweden? Check our article: The Cost of Owning a Car in Sweden
Final Thoughts About House Prices in Sweden
In summary, the housing market in Sweden has experienced fluctuations, with a 13% decline in 2023 and a predicted 1.5% increase in 2024. Average house prices vary across regions, with Stockholm being the highest and Norrbotten the lowest. The ongoing price crisis, influenced by inflation and rising interest rates, has impacted demand, supply, and affordability. The buying process involves careful steps, and expat reviews reflect diverse opinions on the Swedish property market. Whether you’re considering buying or renting, understanding the dynamics of house prices in Sweden is crucial.
Explore the links throughout the article for more in-depth information. Subscribe for updates and share your thoughts in the comments to contribute to the discussion. Your engagement helps sustain this informative blog.
