Sweden and Finland grapple with housing shortages and falling prices

Swedish municipalities Södertälje and Nykvarn report ongoing housing shortages for 2026. Södertälje’s construction has slowed to 3.1 homes per 1,000 residents annually, while Nykvarn’s building pace has risen to 15.9 per 1,000. Nationwide, 176 of 290 Swedish municipalities saw a decline in completions during the current term, and only a handful report a surplus.

In Finland, prices for older apartments dropped 3.9% year‑on‑year in June, with sales volume about 30% lower than a year earlier. Economists attribute the dip to weak consumer confidence, a high supply of homes, and higher interest rates after a period of near‑zero rates. Forecasts suggest a modest 2% price rise in 2025 and a possible market recovery around 2027.