During the first half of the year, 16,650 apartments were started, 12 percent more than the same period last year, according to new figures from Statistics Sweden (SCB).
However, compared to the first half of 2022, this represents a decline of 52 percent.
Although a certain stabilization can be discerned, as interest rates and inflation now appear to be clearly slowing down, it is still a long way to a more normal market for housing builders. The high inflation and significantly higher interest rates have increased construction costs, while demand has plummeted as homebuyers have seen interest costs skyrocket.
Several companies operating in the housing sector have continuously laid off staff as orders have dried up. Just the other day, for example, JM announced that over 100 construction workers would be laid off, and bankruptcies in the construction sector have been unusually numerous.
However, for the construction industry with a broader customer base, there has been a lifeline. As housing construction has crashed, demand has been maintained by orders for industrial facilities and infrastructure.
