Sweden’s rent increase reaches 20-year high in 2025
Swedish rents rose by 4.6% on average in 2025, according to Statistics Sweden (SCB). This marks the second-highest annual jump in more than two decades, following a 5.0% rise in 2024—the largest since 1993. The momentum from the previous year continues a broader pattern of elevated housing costs in major urban areas, after years when annual rent growth hovered around 1–2%.
The numbers behind the rise
SCB’s figures show a sustained departure from the long-run trend of relatively modest rent increases. While 2023 also featured higher-than-average hikes, the 2025 data reinforces a climate in which many renters face steadily rising monthly costs. For households already stretched by inflation and living expenses, the jump translates into meaningful changes in monthly budgeting and housing affordability. The latest data set confirms that 2024 and 2025 together comprise a period of unusually rapid rent growth by historical standards.
City-by-city snapshot
The rent surge is most visible in Sweden’s largest city regions. A three-bedroom apartment now averages about 10,139 SEK per month in the broader Stockholm area, 8,907 SEK in the Gothenburg region, and 10,432 SEK in the Malmö area. In contrast, the average rent in smaller municipalities sits around 8,131 SEK per month. The pattern underlines the persistent urban premium in Swedish housing markets and suggests that households moving to or remaining in big cities shoulder the highest cost burden.
Context and potential explanations
SCB’s data illustrates a clear shift away from the historically slower pace of rent growth. While the precise mix of factors driving the rise can vary by locale, several common threads emerge: ongoing demand for urban living, slower new-build activity relative to population growth, and broader price pressures that affect maintenance, utilities, and property management costs. The result is a rental market where supply cannot keep up with demand in many popular areas, pushing prices higher across the board.
Implications for renters and policymakers
For renters, the 2025 rise means larger monthly housing costs, particularly for families and individuals in Stockholm, Gothenburg, and Malmö. When housing represents a sizeable share of income, even small percentage increases can have ripple effects on discretionary spending, savings, and debt service. Policymakers may face renewed calls to expand affordable housing supply, explore targeted housing subsidies, or adjust programs that support families with children and other vulnerable groups. While the current report focuses on rent levels, it also highlights the broader challenge of maintaining affordable housing amid a tightening market.
What comes next?
Analysts caution that 2026 could bring further volatility, depending on how quickly new rental units come online and how wage growth tracks with living costs. The SCB data will remain a key benchmark for assessing affordability trends, guiding both renters and decision-makers as they gauge the effectiveness of housing and urban policy measures. For households planning a move or renewal, staying informed about regional price trajectories and lease terms will be crucial as the market absorbs this recent period of elevated rents.
Bottom line
Sweden’s 2025 rent increase underscores a notable shift in the country’s housing market: affordability pressures are intensifying in urban centers, even as rents in smaller communities remain comparatively steadier. With the urban rent premium likely to persist, both renters and policymakers will watch closely how supply dynamics and potential policy responses shape the trajectory of housing costs in the years ahead.
