Since the pandemic broke out, house prices in Sweden have risen by 28 percent, according to Swedish Real Estate Statistics.

Prices for condominiums have increased by an average of 14 percent.  

Monthly recent figures show that the trend continues.

Condominium prices rose by 1 percent in January compared with the previous month. 

If you look more long-term at the price development at an annual rate, house prices have risen by 12-13 per cent and condominium prices by 6-7 per cent every month during the past year.

"It feels sad"

The price increases make it difficult for young people to enter the housing market.

In Stockholm, a condominium now costs almost SEK 114,000 per square meter.

- A young person has it almost impossible to buy a studio in Stockholm, says Hans Flink at Swedish Brokerage Statistics.

Hans Flink believes that very few young people are able to pay both cash contributions, interest, repayments and fees.

Stockholmer Elias Kihlström thinks it is sad that it is so difficult for young people to find somewhere to live in the city. 

- It feels sad that only a lot of old people live in the inner city, he says to SVT.

Finansinspektionen: Must go to the root of the problem

Last year, Finansinspektionen reintroduced the amortization requirement, which means that you have to pay off your loans.

Critics say that it excludes younger people from the housing market as they can not afford both cash and repayments.

Finansinspektionen's Director General Erik Thedéen believes that young people's situation in the housing market does not depend on the amortization requirement 

- If you are going to solve the housing shortage, you have to get to the root of the problem.

More housing must be built, it must be easier to rent, there must be a greater supply.

This is where we have to start, says Erik Thedéen in Aktuellt.

High debts - exposed situation

An average home buyer today borrows twice as much as ten years ago, according to Erik Thedéen.

He believes that the rising debt contributes to increased sensitivity.  

- As long as interest rates are low, prices go up and you have a job, things are going well.

But when that spiral turns downwards, many can end up in a vulnerable position.

And if there are very many who end up in a vulnerable situation, then it can affect the Swedish economy.