Sweden was 2016’s poster child for economic growth, and 2017 is expected to be no exception. But below the surface, the issue of steeply rising house prices and high household debt is raising concerns – and not just for banks.
The country's population has risen from below 8.5 million in the late 1980s to 10 million as of 2017, with immigration a contributing factor, while the housing stock has only increased by about 780,000 dwellings in this time, according to Statistics Sweden. Demand for property has been growing, especially in Stockholm and other large cities, while construction has been slow, partly due to delays caused by Swedish planning laws.
