Acute housing shortage threatens Boden’s development

Today, the vacancy rate for rental apartments in Boden is close to zero. In practice, this means there are almost no available homes, affecting both population growth and companies’ ability to recruit.

After ten months of positive population growth, the trend was also broken in March, when Boden recorded a negative population change of eight residents. The municipality believes the housing shortage is likely a contributing factor.

– The housing shortage makes it difficult for new residents to move here and also slows down the internal housing chains that normally free up homes and allow young people to remain in the municipality, says Ellinor Isaksson Larsson, Head of Planning and Land Development.

Growing demand as the transformation accelerates

The demand for labour is expected to continue increasing in the coming years. Establishments connected to Stegra, the expansion of the Swedish Armed Forces and the growing number of companies within the green industrial value chain mean that several thousand people need to be able to settle in Boden.

This does not only concern people working directly in industry or defence. Service industries, retail, the public sector and other parts of the business community are also affected as the population grows and new operations are established.

– The societal transformation creates opportunities for all of Boden and for many different industries. But for development to continue, people also need somewhere to live.

Plans exist – but construction is moving slowly

At the same time, conditions are in place for extensive housing development. The municipality is currently working with eleven detailed development plans that together enable around 1,300 apartments and 500 detached houses. Interest from developers is also described as strong.

Despite this, progress remains slow.

The main reasons are high construction costs, uncertain financing conditions and difficulties in making larger housing projects financially viable.

– The willingness to build exists, but many projects are stalling because costs have become so high. This is a challenge shared by many municipalities right now, but in Boden the consequences are particularly visible because development is moving so quickly, says Ellinor Isaksson Larsson.

At the same time, several initiatives are underway to address the situation in the short term. The municipality is collaborating with regional actors to identify forms of cooperation that can lower barriers in the housing market and create better conditions for using the existing housing stock more efficiently.

This includes exploring how more rooms and housing units can be created through new solutions and improved use of existing properties.

– Every effort is needed to enable more people to settle in Boden. At the same time, we need to be clear that the needs are far greater than what these measures alone can solve. To meet the development ahead of us, a significant increase in housing construction – particularly rental apartments – is required, says Ellinor Isaksson Larsson.

Affecting the entire community

The housing shortage does not only affect people wanting to move to Boden. Residents already living in the municipality are also affected as mobility in the housing market decreases.

Young people struggle to find their first home, older residents lack alternatives when they want to move to something smaller, and people going through life changes may find it difficult to secure new housing.

– The housing shortage affects people’s everyday lives in many different ways. It concerns both the possibility of moving here and the possibility of adapting your living situation when needs change. That is why housing is one of our highest-priority issues right now, says Magnus Åkerlund, Municipal Director.

A crucial issue for continued growth

In recent years, Boden has become one of the municipalities most strongly associated with the green societal transformation in northern Sweden. Billion-euro investments and new establishments have created international interest and opened new opportunities for both businesses and the labour market.

But for development to continue, community development must keep pace.

– The housing issue risks slowing down the positive development we are now seeing. From the municipality’s side, we are doing everything we can to create conditions for both new construction and temporary housing solutions, but it is clear that we will not solve this acute situation on our own, says Magnus Åkerlund.