According to Boverket, 68,000 homes were built last year and this year it is estimated that 60,000 will be built - despite the fact that the need is 80,000. The construction has slowed down and there is talk of building stops in the media. The fact that it is built too few is a fact, but is it the right type of housing that is being built to solve the problem? In this blog post we go through how the building situation in Sweden looks and how it can be affected by crowdlending.
20,000 homes too few are being built per year
In recent years, housing market prices have risen to high levels, while there have been good opportunities for loans for private individuals, which has created incentives for property companies to build more expensive housing. The properties that society in particular needs – apartments at affordable prices and large rented houses – have not had the same economic benefits.
Fewer people have the opportunity to borrow the amounts required to be able to buy at the high prices and the number of apartments for sale has increased.
As it stands today, there are many homes on the market, but few people can afford to buy them. For several years, it has been possible to borrow high amounts due to the low interest rates, but in recent years the requirements have increased for borrowers and the market is now facing a breakpoint with today’s falling housing prices and slowed down new construction. Fewer people have the opportunity to borrow the amounts required to be able to buy at the high prices and the number of apartments for sale has increased. At the same time, it is more difficult for real estate companies to obtain sufficient funding for their projects from banks, which means that it is built considerably less than is needed.
Can crowdlending affect the construction stop?
Crowdlending makes it possible for real estate companies to seek additional funding in addition to the bank – at the same time as more people have the opportunity to invest in real estate. This makes it possible for companies to undertake and complete projects that might otherwise be forced to be put on ice or postponed due to lack of funding.
Sooner or later, we must have homes that people can afford to live in. Crowdlending increases the opportunities for more projects to become reality.
It is a fact that Sweden needs more housing. Over the past 10 years, we have built about 300,000 homes and during the same period had a population increase of over 900,000 people. Sooner or later, we must have homes that people can afford to live in. Crowdlending increases the opportunities for more projects to become reality. As a member, you can lend capital to needy projects, and you can also help to build more housing.
The problem with the construction stop is not only that it is built too little right now – rather that the housing needed to remedy the problem has not been built for a long time. In recent years, due to the high valuations, it has focused on other types of housing. The homes that most of the buildings are built today are not entirely in line with what society needs to reduce the housing shortage.
We need more cheaper homes to be built where the entrance for, among other things, a first home will be lower. Since this type of housing often has lower margins, it often becomes even more difficult for the project owner to obtain sufficient funding through traditional channels. Crowdlending is one of the tools that can be used for more projects to get funding and be completed.