The interest rate and weather save the housing economy

Cheapest quarter in two years. The economy of housing associations has improved significantly. Lower interest rates and unusually warm weather are pushing down costs.

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The interest rate and weather save the housing economy
Photo: Claudio Bresciani / TT

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The housing association organization SBC regularly measures how the average economy of housing associations develops. The fourth quarter of 2024 shows the lowest measured operating costs in two years.

The two heaviest items for a housing association are interest and heating. Interest rates have fallen, which has hardly escaped anyone. And when associations have shifted to shorter loan terms, it has a faster impact than before, according to Markus Pålsson, SBC's chief for business innovation and development.

Markant reduction

Lower heating costs are possibly more surprising, which is related to the unusually warm autumn and winter.

We see a marked reduction in energy consumption for district heating during the fourth quarter compared to previous years. Even though prices have increased by 8-12 percent depending on where you live in the country, the need is still slightly lower, says Markus Pålsson.

But that doesn't mean that associations should lower the fee for members, he thinks.

Partly, this is a temporary factor when we talk about energy and heat. If it becomes a normal winter next year, it will become more expensive, he says.

Lower increases

And the associations' savings have been lower on average in recent years when costs increased sharply.

It's nice to have some relief, but now it's time to plan for the future, says Pålsson.

For despite everything, overall, it is still fee increases that apply, but at a lower rate. On average, the associations connected to SBC raised the fee for members by around five percent at the turn of the year, which was lower than in the previous two years when the fee increases were around eight percent, according to Pålsson.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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