Statistics released by Statistics Sweden (SCB) on May 25, 2023, indicate a significant drop in construction activity during the initial quarter of the year. The preliminary data reveals that approximately 8,300 new residential units were started, reflecting a 50 percent decrease compared to the same period in 2022 when 16,675 units were initiated.
Out of the total housing units commenced, 6,400 were in multi-family buildings, representing a 52 percent decline from the previous year. Construction of single-family houses also experienced a downturn, with approximately 1,900 units initiated, marking a decrease of around 44 percent compared to the first quarter of 2022. In addition to new construction, renovations contributed around 550 housing units, as opposed to 850 units in the corresponding period of the previous year.
To facilitate a meaningful year-on-year comparison, the figures for 2023 have been adjusted by 12 percent for new construction and 63 percent for renovations, considering the average lag experienced in the corresponding period of the previous year.
The decrease in construction activity has impacted various regions across the country. Metropolitan areas, including Greater Stockholm, Greater Gothenburg, and Greater Malmö, witnessed a decline in housing unit initiations. However, the rest of the country also experienced a significant reduction in construction activity.
The decline in construction activity during the first quarter of 2023 presents a challenge for meeting the growing housing demand in Sweden. Authorities and industry stakeholders will need to closely monitor the situation and explore measures to stimulate construction and address the housing shortage in the country.
Please note that the figures presented are based on preliminary data and may be subject to revision in future publications due to reporting delays from municipalities.