Sweden’s Builders Fear Protracted Slump as Housing Falters
- Construction may not recover until 2026: Veidekke official
- Building sector accounts for 11% of Sweden’s economy
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Sweden’s construction industry may be facing years of drought as investment in housing plummets in the wake of steep price declines and rising costs of building new homes.
One of the steepest declines in home prices globally, at 15%, is already putting the brakes on development, even as a large majority of municipalities in Sweden report a shortage of dwellings. Housing starts are set to plummet this year, and the slump may stretch out for years, as soaring inflation and deflating asset values squeeze households’ finances.