Companies in Boden are hiring and the need for housing is Increasing, while new housing production is sluggish. If the trend is not reversed, Boden will face a housing shortage in just over a year.
Boden Municipality is facing a dramatic societal transformation, driven by major establishments and expansions within both the industry and defense sectors. Spearheaded by H2 Green Steel, which is building a new steel plant and plans to employ 1,500 people by 2026, the need for housing is urgent. Two-thirds of these employees are expected to come from outside the region, including northern Finland, meaning many will relocate to Boden for work.
In addition to H2 Green Steel, several other companies are expanding, including the Armed Forces and SMS Group, putting further pressure on the housing market. Despite this growth, there is insufficient housing construction to meet the anticipated demand. By the end of 2025, housing shortages are expected unless construction begins by the third quarter of 2024.
– Currently, we have no problem accommodating those who come, but we also know that the first major pressure from H2 Green Steel will come in the first and second quarters of 2025, says Mats Berg, head of business relations in Boden.
From September to December of the same year, the demand will increase significantly, meaning that the existing housing will no longer be sufficient.
Forecast of the expected timing of completion of new buildings and the expected housing need.
The municipality is now working with property owners and businesses to find solutions and accelerate new housing projects.
– The entire societal transition relies on us increasing the number of Boden residents If we cannot offer housing, it will be more challenging for companies to recruit, and we risk those recruited choosing other places to live than Boden, leading to a loss of tax revenue.
To ensure a successful societal transition, there must be housing solutions with reasonable rents and costs. This means both apartment buildings and single-family homes. A functioning housing market is essential to attract and retain the workforce, crucial for Boden and the entire region’s future.
Boden has plenty of approved detailed plans in attractive locations and is ranked as one of Sweden’s best in handling building permit processes. However, the market has so far not kept pace due to external factors affecting the profitability of new construction.
– 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, says Mats Berg and emphasizes that it is urgent.
He welcomes Norrlandsfonden’s recent initiative to carry out a number of pilot projects to demonstrate the possibilities of a loan-based financing model that can relieve the risk and increase liquidity for the developer during the first critical years before a property is fully completed and fully leased.
– I think it is a good way to make it easier for house builders and we are of course interested. In the longer term, there are certainly other models where the national government can help to stimulate housing construction in the north, but we do not have time to wait.
– In August, a process was initiated in which we, together with H2 Green Steel, property owners locally and regionally and Norrlandsfonden, are mapping needs and opportunities even more clearly.
Our hope is that this collaboration will result in us accelerating construction.
The municipality of Boden is facing a historic opportunity to grow and develop. The population is projected to increase from just over 28,000 to 33,000 by 2030. But for this vision to become a reality, housing construction needs to pick up.
– It is a necessary condition to meet future needs and opportunities. Right now, it is our absolute biggest challenge, and we must solve it. Otherwise, we risk losing the battle for future talents.
