Boden is running out of housing
Companies in Boden are hiring, and the demand for housing is rising—yet new housing construction remains sluggish. If the trend continues, Boden will face a housing shortage in just over a year.
The municipality is undergoing a dramatic societal transformation, driven by major industrial and defence expansions. At the forefront is Stegra, which is building a new steel plant and plans to employ 1,500 people by 2026.
Two-thirds of these recruits are expected to come from outside the region, including northern Finland, meaning many will relocate to Boden for work.
In addition to Stegra, several other employers—such as the Swedish Armed Forces and SMS Group—are expanding, further straining the housing market. Despite this growth, new construction is not keeping pace with projected demand. By late 2025, a shortage is expected unless new housing starts by Q3 2024.
“At the moment, we have no problem accommodating newcomers, but we know that the first big wave from Stegra will come in the first and second quarters of 2025,” says Mats Berg, Head of Business Relations for Boden Municipality.
From September to December of that year, demand will rise sharply, and existing housing will no longer be sufficient.
The municipality is now working with property owners and businesses to find solutions and accelerate housing construction.
“The whole societal transformation depends on increasing our population. If we cannot offer housing, companies will have a harder time recruiting, and we risk that new hires will choose to live in other municipalities. That means lost tax revenue for us,” says Berg.
To ensure a successful transformation, housing must be available at reasonable rents and prices, including both multi-family buildings and single-family homes. A functioning housing market is essential to attract and retain the workforce needed for the future of Boden and the entire region.
Boden has numerous approved zoning plans in attractive locations and is ranked among Sweden’s best municipalities for managing building permits. However, broader economic factors have limited profitability in new construction, slowing market response.
"I am convinced that we can find solutions, but it is a joint challenge that requires cooperation between employers, the municipality and companies that want to build"
Berg sees promise in the Norrlandsfonden’s recent pilot initiative to test a loan-based financing model that could reduce risk and increase liquidity for developers during the critical early years before a property is fully completed and rented out.
“I think it’s a great way to support housing developers, and of course we’re interested. In the long term, there may be other models where the state contributes to stimulating housing construction in the north—but we can’t afford to wait.”
In August, a process began to map out needs and opportunities more clearly in collaboration with Stegra, local and regional property owners, and Norrlandsfonden. The aim is to accelerate construction.
Boden now faces a historic opportunity for growth. The population is projected to increase from just over 28,000 to 33,000 by 2030. But for this vision to become reality, housing construction must gain momentum.
“It’s a necessary condition for meeting future needs and opportunities. Right now, it’s our single biggest challenge, and we must solve it—otherwise, we risk losing the race for tomorrow’s talent,” says Berg.
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Text by: André Samuelsson
Photo by: Mats Engfors/Fotographic
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