The Laws of Supply and Demand also apply in Sweden;
Sweden's rental control system has been blamed for causing the housing shortage particularly in Stockholm according to a new report issued by the National Housing Board.
The report claims that the system, which allows low rents in wealthier locations, is actually a deterrent to developers building new rental apartments.
"What we found is that the inefficient allocation of apartments is very big in comparison to the under-supply. What this means is that the efficiency level is reduced in comparison to the official level. This under-supply is accumulated over several years," Pål Sjöberg, project leader of the National Housing Board (Boverket) report told The Local.Also no surprise, no one wants to actually solve the problem;
Despite the findings of the Boverket report Sjöberg said it is too early to suggest scrapping the rent control system.
"We can't say the system must change based on this analysis as we need to investigate other aspects before making such a conclusion."