1600 new homes in two years
- now Skellefteå wants to accelerate the construction boom!

In 2023, about 800 new homes were completed in Skellefteå, the same number as in 2022. Despite the record-high rate of migration and the tangible housing shortage, Skellefteå faces challenges from external factors and outdated prejudices about Norrland from investors, which inhibits investments.

- In Skellefteå, we have a strong economy, with many opportunities for growth and development, but it is crucial that we can add new housing, says Patrik Larsen, land and development manager in Skellefteå.

In addition to Sweden's metropolitan regions, Skellefteå is experiencing the highest level of migration pressure. Never before have so many people moved into the municipality as last year when we grew by 2140 new inhabitants.

However, these record figures place great demands on public services, infrastructure and, not least, housing. Even though the construction cranes are piling up like never before, the addition of new housing has not been able to keep up with the same development as the need for 1000 new homes per year.

We simply need actors who are willing to invest.

- One challenge we encounter when seeking capital is that those who have the money are often located in Stockholm and have an outdated view of Norrland. We wish they could look past that and take part in our development forecast, which is very strong. Unfortunately, we are often confused with the investments in Boden and Luleå, which are a few steps behind us in development. We are in the middle of an intensive expansion phase - with Northvolt in full swing, and the entire factory is expected to be completed in two years. Although we are much further ahead in the development, we are still met with hesitation when it comes to attracting investments to Skellefteå, says Patrik.

Skellefteå is in the midst of a period of strong growth and development - in fact, the National Institute of Economic Research recently reviewed statistics from Skellefteå and concluded that the climate here is unique:

- We have a boom when the rest of Sweden has a recession. That's the feeling we had, but it was interesting to see it in black and white from the NIER, says Patrik.

Skellefteå is thus going against the tide thanks to the investments being made, but can't escape being affected. Despite strong interest from construction companies that want to build homes in the area, there is a lack of available capital from investors.

- This creates a catch-22 situation where we do not want to allocate land for housing construction without sufficient funding. If we compare the situation and how it differs just two years ago when interest rates were almost zero, there is a big difference, he says.

"Today, we have an economic downturn, higher interest rates, increased raw material prices - everything plays a role when construction companies calculate projects.

- This means that return requirements have increased; today, a much higher return is required to attract investors, which has clearly affected new construction projects, he says.

The municipal housing company Skebo has made a strong contribution as a community builder and shown the way. Klockarhöjden, a project with 155 homes, is just one example of new construction. In 2024, Skebo is expected to further expand its market share. The projects at Getberget and in Byske, Bureå and Burträsk are then expected to be ready for occupancy, which means that it will add about 250 homes to the total number of about 700 homes that look set to be completed in 2024.