Swedish housing shortage Costing the economy Billions – case study Stockholm
Monday, 11 November 2013
Swedish capital Stockholm is in housing crisis mood and this is well known. But what is not yet known until. According to media reports, it now been determined that the cost to the economy of housing shortages in Stockholm will cost Skr21 billion a year in lost growth over the next 20 years.
Skr11 billion will also be lost in direct costs and almost as much in indirect effects - according to estimates Swedbank economists have done.
“We've figured out what the difference is if construction continues at the same pace as today or construction so that everyone has a home,” says Anna Felländer, acting chief economist, to Swedish paper, Svenska Dagbladet.
The housing shortage is at present an obstacle for companies in knowledge-intensive industries to recruit, according Felländer. This means that the city also loses jobs in services, as people with their high purchasing power migrate elsewhere, the newspaper said.