Rental Market in Sweden

Housing Shortage - first & second hand leases - rent limits and levels

Housing Shortage

Finding housing in Sweden is considerably more difficult than in other European countries. Sweden has a housing shortage. This is experienced most in Swedish cities, and by students and foreigners.

Renting a house or apartment in Sweden can be so competitive that there is a black market for long-term leases. Foreigners intent on staying in the country long-term may want to buy a house rather than join the rental market.

First & Second Hand Rentals

In Sweden you find the terms first-hand and second-hand rentals. These refer to apartments rented directly through a landlord (first-hand) or sublet through the current tenant (second-hand).

First-hand rentals are limited and, in really popular areas, there may be years’ long waiting lists.

Second-hand Rentals

Most newly arrived internationals in Sweden live in a series of second-hand rentals in Sweden before landing a first-hand contract. Second-hand renting is where you rent from the tenant who has the first-hand contract (in most other countries, this is called subletting). Second-hand rentals are sometimes the only option, but for these you may only be allowed to live in the unit for a maximum of one year.

These contracts are used for two types of apartments:

for ‘bostadsrätter’ e.g. apartments that are directly owned
and ‘hyresrätter’ e.g. apartments for which the lessor holds the lease.

Both types are covered by Swedish rental regulations (‘hyreslagen’).

In order to “sublet “or rent out one’s apartment, the tenant or owner must have a legitimate reason. These include moving abroad, trial living together with a partner or working/studying in another city. For this reason the sublease period usually does not exceed two years and often is shorter. This is why short-term tenants often to have to move from sublet to sublet, sometimes several times in a year.

The advantage to sublets is they’re relatively simple to enter into and they do give you a chance to get started and buy you time to find a more suitable long-term solution.

If you have a second-hand contract, it is important to check that the second-hand leasing has been approved by the original landlord. Some landlords do not allow second-hand leasing, or may want to vet the second-hand tenant themselves. If you are in violation of this, you can be evicted.

Rent Levels

Swedish rent prices vary based on municipality and whether you live in an urban or rural area. On the whole, rent is high and consumes an average 30% of every resident’s salary. To try to combat the problem of an increasingly expensive market, the Swedish government sets rent caps every year. Since 2000, rental prices have not seen an annual increase above 2%.

Second-hand leases are typically more expensive than first-hand leases. According to recent statistics, second-hand leases can average up to 65% more than a first-hand lease. Sweden has also seen a recent rise in landlords who overcharge second-hand leases simply because they know people are desperate for accommodation. Anyone with a second-hand lease should also check that they are paying the same amount of rent as the original tenant. It is illegal for a first-hand tenant to make money off of a second-hand lease. The only allowed extra cost is for renting a furnished versus unfurnished apartment.

If you are renting an apartment, heating and water should be included in your rent.