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Not enough housebuilding, no green revolution


Jens Pihlblad, director of business policy at Fastighetsägarna Mittnord.
Jens Pihlblad, director of business policy at Fastighetsägarna Mittnord.

In the context of the green industrialization in northern Sweden, the demand for skilled labor is high, while unemployment is the lowest in the entire country. This has created opportunities for individuals to enhance their lives by renting out their homes to guest workers and candidates drawn to Norrland.

Debatt 4 september 2023 15:00

Throughout northern Sweden, these residences are bustling with hundreds and thousands of guest workers arriving from and departing to various industries, representing different nationalities, collaborating to actualize green industrialization. However, long-term housing remains scarce for those considering relocating with their families from southern to northern Sweden.

While offering private individuals the chance to rent out their homes to guest workers and adding a touch of luxury to life seems positive, can this be sustained over time?

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Time-consuming processes risk affecting the green transition, writes Jens Pihlblad.

In order to establish a long-term and sustainable housing policy, we at the Mid-North Property Owners' Association (Fastighetsägarna Mittnord) argue that real estate companies need favorable conditions, primarily at the municipal level, to reduce the time spent on planning and building permit processes. Lengthy lead times hinder housing construction, which in turn affects the overall development of society.

The Swedish real estate market has developed rapidly, and the delicate balance between rental prices and rising interest rates has created challenges for real estate companies throughout the country. The constant struggle to maintain reasonable rents against rising interest rates that erode margins makes it difficult for these companies to adapt to the changing needs of tenants, let alone build new properties for our new industrial workforce.

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Mittnord has submitted ten proposals to the government to address the housing crisis.

Fastighetsägarnas Mittnord has submitted ten proposals to the housing minister to address the housing crisis. One suggestion is to simplify the process of converting commercial space into residential units. Another is to improve the ability of housing companies to allocate funds and claim deductions for repairs, thereby strengthening their ability to build more rental housing.

A well-functioning rental market and green housing policies are essential to the success of green industrialization efforts. Ensuring favorable conditions at the municipal level during a financially challenging period for real estate companies is essential to achieving economic health and prosperity in the face of the ongoing green transformation.

Jens Pihlblad, director of  business policy, Fastighetsägarna Mittnord. 

Fact box

Fastighetsägarna Mittnord is an interest and industry organization in Sweden with roughly 3,300 members and around 60 employees working here with opinion formation, member service, legal issues, environmental issues, rent negotiation, communication and training.


 
 
 
 
 
 
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