Housing Inequality
What does it mean?
Housing inequality in Sweden has increased markedly since the 1990s. The gaps are clearly visible: high-income earners live in owned homes in attractive areas with rising values, while low-income earners are relegated to the rental market — often in less desirable suburbs. Income is the strongest factor, but ethnicity and age also play significant roles. Foreign-born residents have considerably worse housing conditions than native-born, with higher rates of overcrowding and subletting.
The age gap is also striking: older generations purchased homes when prices were low and have accumulated substantial assets, while young people today can barely afford to enter the housing market. The mortgage interest deduction, which subsidizes housing loans, primarily benefits those who already own. Meanwhile, the dismantling of housing subsidies and the market orientation of public housing have reduced the supply of affordable rentals. The result is a system that reinforces existing economic divides.
Key Points
- High-income earners own in attractive areas, low-income earners rent in suburbs
- Foreign-born residents have worse housing conditions — more overcrowding and subletting
- Young people struggle to enter the housing market — generational gap
- Mortgage interest deductions and tax systems favour homeowners over tenants
- Dismantled subsidies and market-oriented public housing widen the gaps
Practical Tip
As a young or newly arrived person with limited resources, start by registering in the housing queue and supplement with private landlords. Build your housing merit through verified identity, documentation, and references — on Bofrid you can collect all this digitally to strengthen your application.
Based on content from Bofrid's Knowledge Bank