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.

» Published:

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

Share this article

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.

Tags

Author

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

More news

Trump Proposes Ending Quarterly Reports for Wall Street Companies

Trump Proposes Ending Quarterly Reports for Wall Street Companies

EU Regulators Seek Stricter Crypto Supervision by ESMA

EU Regulators Seek Stricter Crypto Supervision by ESMA

Elon Musk Buys $1 Billion in Tesla Shares, Boosting Stock by 7%

Elon Musk Buys $1 Billion in Tesla Shares, Boosting Stock by 7%

China Investigates Nvidia for Competition Law Violations

China Investigates Nvidia for Competition Law Violations

USA and China Reach Framework Agreement on Tiktok's Future

USA and China Reach Framework Agreement on Tiktok's Future

Black Soldier Fly Oil and Protein Developed for Animal Feed

Black Soldier Fly Oil and Protein Developed for Animal Feed

Basmati Rice Dispute Stalls EU-India Trade Agreement

Basmati Rice Dispute Stalls EU-India Trade Agreement

Stockholm Stock Exchange Stalls as Wall Street Opens

Stockholm Stock Exchange Stalls as Wall Street Opens

Sweden Construction Costs Rise 0.4% in August Amid Higher Electricity Prices

Sweden Construction Costs Rise 0.4% in August Amid Higher Electricity Prices

Swedes Report Decreased Satisfaction with Banks This Year

Swedes Report Decreased Satisfaction with Banks This Year

Fashion Trade Sales Rise for Third Consecutive Month

Fashion Trade Sales Rise for Third Consecutive Month

Powell's Rate Signal Influences Swedish Households Too

Powell's Rate Signal Influences Swedish Households Too

Asian Markets Rise Despite Weak China Data

Asian Markets Rise Despite Weak China Data

ANZ Bank Faces Record Fines for Bond Deal Misconduct

ANZ Bank Faces Record Fines for Bond Deal Misconduct

Trump Welcomes Foreign Investment and Workforce in the USA

Trump Welcomes Foreign Investment and Workforce in the USA

Government Boosts Support for Sweden's Regional Airports

Government Boosts Support for Sweden's Regional Airports

Klarna CEO: Embracing "Swedishness" as a Key Asset

Klarna CEO: Embracing "Swedishness" as a Key Asset

Handelsbanken Swish Payment Disruption Resolved

Handelsbanken Swish Payment Disruption Resolved

Government Proposes Increased Export Credit Guarantees for Swedish Companies

Government Proposes Increased Export Credit Guarantees for Swedish Companies

AstraZeneca Halts UK Research Facility Expansion Plans

AstraZeneca Halts UK Research Facility Expansion Plans