One of the election promises made by the Social Democrats in 2014 was to speed up housing construction and make it easier for young people to find a home they could afford. The government allocated SEK 3.2 billion annually in housing subsidies for new, affordable rental properties but to date the reform has had little impact; just 9,000 of the more than 200,000 homes constructed during the government’s term of office have been built as a result of the investment aid, primarily in areas where there is no housing shortage.
This has irritated many local government politicians in Sweden’s metropolitan areas and in Stockholm the Social Democratic-run council has gone so far as to condemn the reform. The construction industry is also critical, with Johan Skoglund CEO of builder JM saying the government has actually made it harder for young people to enter the housing market.
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