But underneath that question is a deeper one we\u2019re not always willing to ask:<\/p>\n\n
What kind of affordability are we trying to achieve \u2013 and what drives the gap between need and delivery?<\/em><\/strong><\/p>\n\n From the outside, it may look as though construction isn\u2019t happening because there\u2019s no demand. In reality, it\u2019s the opposite: the demand exists, but developers cannot make the numbers add up.<\/p>\n\n In one of the week\u2019s most telling sessions, analyst Ted Lindqvist<\/strong> pointed out that Sweden needs over 52,000 new homes per year to meet future needs. Right now, we\u2019re delivering roughly half that.<\/p>\n\n Why?<\/em><\/p>\n\n This is because construction costs have increased significantly. Materials, labour, planning processes and risk \u2013 all have become more expensive.<\/p>\n\n The result is clear: the math no longer works.<\/p>\n\n <\/p>\n\n Several panels focused on helping more people to buy \u2013 by easing credit requirements, offering starter loans or reducing amortisation requirements.<\/p>\n\n But affordability is not only about owner-occupied housing. It is equally about rental housing \u2013 particularly in cities where labour markets, mobility and social access require flexible forms of tenure.<\/p>\n\n It is easy to say that prices have risen. But in fact, market prices have not changed dramatically.<\/p>\n\n The real issue is that households\u2019 purchasing power has declined, while construction costs have risen.<\/p>\n\n So we\u2019re now in a double bind:<\/p>\n\n Raising prices and rents or increasing purchasing power are solutions that take longer to achieve than working to reduce construction costs using proven, existing methods and system solutions.<\/strong><\/p>\n\n We heard in one analysis that a 13% increase in housing prices could result in 20% more housing starts – because developer margins would become viable again. That\u2019s how tight the current margins are.<\/p>\n\n Yet here lies a paradox: building more cheaply does not automatically mean it will be sold more cheaply<\/strong> \u2013 unless there is a mechanism (policy, procurement, or pressure) to ensure that cost savings are passed on to the end customer.”<\/p>\n\n It is a broader issue. But on the production side, we must at least begin by eliminating inefficient, non-value-adding activities and preventing defects and shortcomings that emerge during the warranty period.<\/strong>.<\/p>\n\n We cannot solve affordability solely from the demand side. If the bottleneck in project planning remains, we are merely treating the symptoms.<\/p>\n\n This is where systems thinking becomes tangible \u2013 not as a policy slogan, but as a practical tool.<\/p>\n\n This is not hypothetical. There are already solutions that make this possible.<\/span> They make property development configurable, faster, more sustainable \u2013 and, above all: possible.<\/p>\n\n With lower construction costs, more projects can become viable. This increases supply \u2013 and, over time, creates the conditions for price pressure. Not immediately, but structurally, in the long term.<\/p>\n\n As long as development appraisals fail to stack up, every measure on the buyer side will face an uphill battle.<\/p>\n\n That does not mean we should abandon support for buyers.<\/p>\n\n But we must pair it with changes on the delivery side.<\/p>\n\n In short: we need to create homes that do not have to cost what they do today.<\/strong><\/p>\n\n That is what makes affordability sustainable \u2013 not only for households, but also for developers, municipalities and society as a whole.<\/strong><\/p>\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Reflections from Almedalen 2025 by Edwin M\u00e5radson, CSO at NordNest AB This year in Almedalen, housing was not just a…<\/p>\n","protected":false},"author":4,"featured_media":4397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-4399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"acf":[],"yoast_head":"\nThe reality: costs are too high to build, even where the need is greatest.<\/h2>\n\n
![\"\"](\"https:\/\/nordnest.se\/app\/uploads\/2025\/06\/Image-1-1024x576.jpg\")
<\/figure>\n\n\n\n![\"\"](\"https:\/\/nordnest.se\/app\/uploads\/2025\/06\/Image-2-1024x768.jpg\")
<\/figure>\n<\/figure>\n\nRethinking Affordability: It\u2019s Not Just About Ownership<\/h2>\n\n
The Real Cost Problem: Not That Homes Are More Expensive – But That Buyers Can\u2019t Afford Them<\/h2>\n\n
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Systems Thinking: Start Where the Bottleneck Begins<\/h2>\n\n
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We must not only make it easier to buy \u2013 we must make it possible to build.<\/h2>\n\n
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