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Sweden's rental market is experiencing significant price increases across major cities. As of September 2025, average residential rents have risen by 5.5% over the past 12 months, with Stockholm, Gothenburg, and Malmö leading the increases due to persistent demand and limited housing supply.
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Sweden's rental prices have increased by 5.5% in the past year, with Stockholm leading at 4-7% growth and new contracts commanding higher rates than renewals.
The rental market faces supply shortages, inflation pressure, and demand from urbanization, with rent growth outpacing salary increases across major cities.
| City | Average Gross Yield (%) | Rent Growth (2025) | Typical Monthly Rent (SEK) |
|---|---|---|---|
| Stockholm | 4.2% | 4-7% | ~7,700 |
| Gothenburg | 5.0% | 4-5% | ~7,400 |
| Malmö | 6.0% | 5-6% | High yield market |
| Uppsala | 7.0% | 5-6% | High yield market |
| National Average | 5.5% | 5.5% | Varies by region |
How much have average rental prices in Sweden changed in the past 12 months?
Sweden's average residential rental prices increased by 5.5% over the past 12 months as of September 2025.
This increase represents a significant acceleration from historical averages, with the rental market experiencing one of its most substantial growth periods in recent years. The 5.5% national average masks considerable regional variation, with major urban centers driving much of this growth.
The rental price surge builds on previous year's momentum, where dwelling rents increased by 6.1% in 2024, followed by an additional 5.48% gain reported in 2025. These consecutive years of above-average growth reflect persistent structural imbalances in Sweden's housing market, particularly in metropolitan areas where demand consistently outstrips supply.
Major urban areas like Stockholm, Gothenburg, and Malmö have experienced the steepest increases, with some submarkets seeing rent growth approaching 7% annually. These increases affect both new rental contracts and, to a lesser extent, existing lease renewals, though Sweden's rent control regulations moderate some of the pressure on existing tenants.
The 5.5% increase significantly outpaces Sweden's general inflation rate and wage growth, creating affordability challenges for many renters across the country.
Which cities or regions in Sweden are seeing the biggest increases in rent right now?
Stockholm leads Sweden's rental price increases, with apartment rents growing 4-7% in 2025, significantly above the national average.
Gothenburg follows closely with notable apartment rent increases of 5% in 2024 and an additional 4% expected in 2025. The city has shown consistent above-average rental growth for the past three years, driven by strong economic fundamentals and population growth in the western Sweden region.
Malmö city center maintains strong rental growth momentum, with yields averaging 6.0% and continuing demand pressure. The southern Sweden hub benefits from its proximity to Copenhagen and growing business sector, creating sustained rental demand that pushes prices higher.
Uppsala, despite being smaller than the three major cities, shows impressive yields of 7.0%, indicating rapid rental growth in this university city. The combination of student demand and proximity to Stockholm creates a tight rental market with accelerating prices.
Urban centers and rapidly growing business districts across Sweden generally report the steepest rental increases, while rural and smaller cities experience more moderate growth rates typically in line with or below the national average.
What's the difference in rental price trends between apartments and houses in Sweden?
Apartments in major Swedish cities experience sharper rental price increases than houses, primarily due to higher demand density and limited urban stock availability.
City center apartments face the most intense rental pressure, with Stockholm apartments seeing yields of 4.2% and rent growth of 4-7% annually. These properties benefit from proximity to employment centers, public transportation, and urban amenities, creating sustained demand from both local and international renters.
Houses typically experience rental increases at a slower pace than centrally located apartments, though they still see meaningful growth. Single-family rental houses in suburban areas or smaller cities generally track closer to the national average of 5.5% annual growth rather than the accelerated rates seen in urban apartment markets.
Large family apartments or high-end houses in premium locations can command exceptional rents, sometimes exceeding SEK 100,000 per month. These luxury properties represent a distinct market segment with pricing dynamics driven by affluent tenant demand rather than general market conditions.
The apartment-house differential reflects Sweden's urbanization trends, where population concentration in major cities creates intense competition for apartment rentals while house rental markets remain more geographically dispersed and price-sensitive.
How do rental prices in Stockholm compare to other major Swedish cities like Gothenburg or Malmö?
| City | Average Gross Yield (%) | Monthly Rent (SEK) | 2025 Growth Rate |
|---|---|---|---|
| Stockholm | 4.2% | ~7,700 | 4-7% |
| Gothenburg | 5.0% | ~7,400 | 4-5% |
| Malmö | 6.0% | Variable, high yield | 5-6% |
| Uppsala | 7.0% | Variable, high yield | 5-6% |
| Swedish Average | 5.5% | Varies by region | 5.5% |
What is the current average rent per square meter in Sweden's main urban areas?
Stockholm's average monthly rent reaches approximately SEK 7,700 for typical apartments, representing the highest absolute rental costs among Swedish cities.
Gothenburg commands average monthly rents of around SEK 7,400, positioning it as the second most expensive major rental market in Sweden. The city's strong industrial base and port economy support higher rental prices while maintaining more accessible yields for investors compared to Stockholm.
Malmö and Uppsala, while showing higher percentage yields of 6.0% and 7.0% respectively, demonstrate that strong rental growth can occur at different absolute price points across Swedish cities. These markets offer attractive combinations of rental yield and price appreciation for both tenants and landlords.
The yield differentials between cities reflect varying supply-demand dynamics, with Stockholm's lower 4.2% yields indicating higher property purchase prices relative to rental income, while Malmö's 6.0% yields suggest more favorable rental returns relative to property acquisition costs.
It's something we develop in our Sweden property pack.
How fast are rental prices growing compared to salary growth in Sweden?
Swedish rental price growth at 5.5% significantly outpaces wage increases, which have remained below 4% nationally in 2024-2025.
This divergence creates a growing affordability gap for Swedish renters, particularly in major cities where rental increases reach 4-7% annually. The disparity between rent growth and salary increases means that housing costs consume an increasing share of household income for many Swedish residents.
Academic sources and national statistics consistently show average salary growth lagging behind rental price increases, pointing to a structural challenge in Sweden's housing market. This trend affects both new renters entering the market and existing tenants facing renewal negotiations.
The rent-to-income ratio deterioration particularly impacts younger demographics and recent arrivals to major cities, who typically face higher rental costs relative to their earning capacity. Middle-income households in Stockholm, Gothenburg, and Malmö experience the most pronounced affordability pressure.
This growing rent burden indicates that rental housing becomes less accessible over time unless wage growth accelerates or rental price increases moderate through increased housing supply or policy interventions.
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Are new rental contracts being signed at higher rates than older ones being renewed?
New rental contracts in Sweden consistently command higher rates than existing lease renewals, particularly in supply-constrained markets like Stockholm and other major urban centers.
This two-tier rental market emerges from Sweden's rent control regulations, which moderate increases on existing contracts while allowing market-rate pricing for new tenancies. Landlords can negotiate higher starting rents with new tenants but face restrictions on raising rents for continuing tenants.
The differential between new and renewal contracts has widened as market demand intensifies, creating significant disparities in rental costs for similar properties depending on tenancy duration. Long-term tenants often pay substantially less than new renters for comparable apartments in the same buildings.
Stockholm's tight rental market exemplifies this trend, where new contracts often price 10-20% higher than renewals for similar properties. This pricing structure incentivizes tenant retention while creating barriers for new renters entering the market.
Tenant protection laws moderate some renewal increases through negotiation requirements and approval processes, but these regulations do not extend to new contract pricing, allowing market forces to drive initial rental rates higher.
How much are utility costs and other housing-related expenses adding to the total monthly cost for renters?
Utility and common charges add between SEK 900-2,500 per month for most urban apartments in Sweden, depending on consumption patterns and building type.
These additional costs significantly impact total housing expenses, with heating, electricity, water, and building maintenance fees representing substantial portions of monthly housing budgets. Newer buildings with energy-efficient systems typically fall toward the lower end of this range, while older buildings often require higher utility expenditures.
Internet, home insurance, and other housing-related fees bring typical total monthly housing costs to SEK 8,500-12,000 for small to medium apartments in central Swedish cities. This comprehensive cost calculation includes rent, utilities, insurance, and essential services required for comfortable urban living.
Seasonal variation affects utility costs substantially, with heating expenses during Swedish winters adding significant monthly costs from October through April. Tenants must budget for higher winter utility bills that can increase total housing costs by SEK 500-1,000 monthly during peak heating months.
The all-inclusive housing cost perspective reveals that advertised rental prices represent only the baseline expense, with total housing costs often 15-25% higher than the stated monthly rent due to these additional required expenses.
What role is inflation playing in Sweden's rental market today?
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Sweden versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What role is inflation playing in Sweden's rental market today?
Inflation pressure keeps Swedish rental increases above historic levels, affecting both landlord operating costs and tenant purchasing power.
Rising inflation impacts rental markets through multiple channels, including increased maintenance costs, higher property management expenses, and elevated construction costs for new housing supply. Landlords face pressure to raise rents to maintain profit margins amid inflating operational expenses.
Sweden's rental markets remain subject to strict regulation despite inflationary pressure, with most rent increases requiring negotiation or regulatory approval. This regulatory framework moderates inflation's direct impact on rental pricing compared to less regulated markets, though it cannot eliminate inflationary effects entirely.
The combination of inflation and rental growth outpacing wage increases creates compounding affordability challenges for Swedish renters. As general prices rise while housing costs increase even faster, households face reduced disposable income and greater financial stress.
Inflation expectations influence both landlord pricing strategies and tenant willingness to accept rent increases, with both parties anticipating continued price pressures that shape rental market negotiations and long-term housing decisions.
How has the demand for rental housing versus supply changed in Sweden recently?
Demand for rental housing in major Swedish cities substantially outpaces supply availability, with vacancy rates reaching historic lows across metropolitan areas.
Strong inward migration drives much of this demand imbalance, with urbanization trends, international talent recruitment, and domestic population shifts concentrating housing demand in already supply-constrained cities like Stockholm, Gothenburg, and Malmö.
New arrivals including international professionals, students, and domestic migrants create sustained rental demand that existing housing stock cannot accommodate. This demographic pressure particularly affects apartment markets in city centers and well-connected suburban areas.
Housing supply constraints result from lengthy permitting processes, construction cost inflation, and regulatory barriers that limit new development pace. Sweden's complex planning approval system often delays new rental housing projects, preventing supply from responding quickly to demand increases.
The supply-demand imbalance creates competitive rental markets where tenants face limited options and landlords can maintain selectivity in tenant choice, contributing to both rental price increases and reduced tenant bargaining power across major Swedish cities.
What government policies or regulations are affecting rent increases in Sweden right now?
Sweden's strict rent control regulations and tenant protection laws ensure modest increases on existing contracts while encouraging higher prices for new contracts in undersupplied markets.
1. **Rent Control Framework**: Sweden maintains comprehensive rent control systems that require negotiations and approvals for most rental increases on existing tenancies, limiting landlords' ability to raise rents rapidly. 2. **New Contract Flexibility**: Regulations allow market-rate pricing for new rental contracts, creating a two-tier system where new tenants pay higher rates than long-term renters in similar properties. 3. **Development Incentives**: New government initiatives aim to protect tenants while modestly easing housing supply through development incentives and streamlined permitting for certain housing projects. 4. **Tenant Protection Measures**: Strong legal protections for existing tenants moderate rent increase pressure through required negotiation processes and dispute resolution mechanisms. 5. **Regulatory Compliance**: The tight regulatory environment keeps Swedish rental growth somewhat contained compared to neighboring countries, though it cannot prevent all market-driven price increases.These policies create a complex rental market where regulatory protection benefits existing tenants but may inadvertently increase costs for new renters entering an already supply-constrained market.
What are experts predicting about Sweden's rental prices for the next 6 to 12 months?
Real estate experts predict continued rental price increases in Swedish central cities, with growth rates expected in the 4-6% range over the next 6-12 months.
This projected growth rate reflects ongoing supply-demand imbalances and persistent inflationary pressures that show no signs of immediate resolution. Stockholm, Gothenburg, and Malmö are expected to lead this growth, maintaining their positions as Sweden's most dynamic rental markets.
Unless housing supply increases substantially through accelerated construction or policy changes, rent burdens will remain elevated, particularly affecting new rental contracts in urban apartment markets. The supply shortage represents a structural challenge requiring long-term solutions rather than short-term market adjustments.
Urban apartments face the most significant price pressure in expert forecasts, with demand concentration in city centers continuing to drive rental growth above national averages. Suburban and rural markets may experience more moderate increases closer to overall inflation rates.
It's something we develop in our Sweden property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Sweden's rental market shows clear upward momentum with 5.5% annual growth driven by supply constraints and urban demand concentration.
For property investors, current rental yields in Stockholm (4.2%), Gothenburg (5.0%), and Malmö (6.0%) offer opportunities, though new contracts command premiums over renewals due to regulatory structures.
Sources
- Global Property Guide - Sweden Price History
- Global Property Guide - Sweden Rent Price Trends
- InvestRopa - Sweden Real Estate Market
- Relocate.me - Cost of Living Sweden
- Relocate.me - Cost of Living Stockholm
- Guestly Homes - Apartments in Sweden
- OECD Economic Surveys Sweden 2025
- Wise - Cost of Living Sweden