Vacancy Rate
What does it mean?
The vacancy rate is the proportion of unrented apartments or premises in a property portfolio, expressed as a percentage. It is a key metric for property owners, investors, and municipalities indicating housing market balance. A low vacancy rate (below 1%) indicates a housing shortage, while a rate above 3–5% may indicate oversupply.
In Sweden, the average vacancy rate for rental apartments is very low in major cities — often below 1% in Stockholm, Gothenburg, and Malmö. In smaller towns and rural areas, the vacancy rate can be significantly higher. For property owners, the vacancy rate directly impacts profitability — every empty apartment is lost rental income. Landlords with high vacancy rates may need to lower rent, renovate, or improve their marketing.
Key Points
- Proportion of unrented apartments in a portfolio — expressed as percentage
- Below 1% indicates severe housing shortage — common in Swedish cities
- Above 3–5% may indicate oversupply or lacking attractiveness
- Directly linked to property owner profitability and cash flow
- Municipalities use vacancy rates for housing supply planning
Practical Tip
As a tenant — search for housing in areas with higher vacancy rates for better negotiating position. As a landlord — monitor your vacancy rate monthly and act quickly if it rises. Renovation and better advertising can reduce vacancy.
Based on content from Bofrid's Knowledge Bank