Demand dropped, but so did supply?

A quirk in the Stockholm rental market made it one of the more interesting cities that I researched virtually since the start of the pandemic.

Generally speaking, sources around the world have indicated that as demand plummeted starting in March, supply increased, as would be expected. However, somewhat counterintuitively in Stockholm, as demand dropped, so did supply. 

Stockholm's rental market is historically well known for its extremely limited supply. An essential part of that rental supply comes from a large number of expatriate Swedes who own property in the country, but rent it out while living and working abroad.

Due to the COVID-19 pandemic, many of these expatriates have returned to Sweden and so have taken their rental units off the market. Given that Stockholm is already a city with very low vacancy, the reduced supply has been felt, and has nearly cancelled out the price impact resulting from the reduced expatriate arrivals. 


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On-site Insight: 

This post is part of AIRINC's On-site Insight series. On-site Insight provides readers with an exclusive “behind-the-surveys” perspective of new and existing expatriate locations based on commentary and photos from our global research team. Included is information on general living conditions as well as changing costs for both Goods & Services and Housing & Utilities, along with much, much more.


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