Skip to main contentRental Guide 2025: Prices in Sweden's Smaller Cities – and Where Growth Awaits
For robotsThe Swedish rental market in 2025 has been characterized by an interesting shift. Despite leaving the worst years of inflation behind us, we see a clear divide between the country's major metropolitan areas and the growing smaller cities. For those seeking housing where their budget stretches further, attention has increasingly turned to locations that combine quality of life with industrial progress.
Rental Situation 2025: The Figures You Need to Know
According to recent statistics from Statistics Sweden (SCB), the average rent increase for 2025 landed at 4.6%. This is a slight slowdown compared to 2024, but the differences between municipalities are striking.
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Smaller municipalities (< 75,000 inhabitants): Here, the average rent for a three-room apartment is approximately 8,131 SEK/month, which is significantly lower than the national average of 9,118 SEK.
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Cheapest options: In municipalities like , you can still rent a three-room apartment for just over 5,100 SEK, while the corresponding space in a commuter-friendly small town like can cost almost double.
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Regional Analysis: The Small Towns Leading the Development
1. The Industrial Boom in the North: Skellefteå & Piteå
The green industrial transition has made Skellefteå one of the country's most talked-about cities. Despite the expansion, rental levels in the older housing stock are still affordable, while new construction in areas like Skelleftehamn is setting a new standard. The neighboring town of Piteå is seeing a similar trend with increasing demand for central apartments.
2. Coastal Attractiveness: Varberg, Kalmar & Halmstad
Cities like Varberg and Halmstad are consistently ranked highly for their quality of life. Varberg is undergoing massive urban development as the railway is being placed in a tunnel, freeing up land for new rental apartments near the sea. Kalmar stands out as one of the cities with the lowest rent increases in 2025 (approximately 2%), making the city a winner for students and families with children.
3. Logistics and Academia: Eskilstuna, Örebro & Växjö
Eskilstuna has been transformed into a logistics hub, attracting a younger population. At the same time, student cities like Örebro and Växjö maintain a dynamic rental market. In Växjö, they have managed to balance new construction with preservation, which has created a stable price picture despite a growing population.
4. The Heart of Dalarna: Borlänge & Falun
In Dalarna, we see that Borlänge and Falun benefit from each other's proximity. Borlänge's industrial heritage combined with Falun's role as a county seat creates a robust rental market where the queues for first-hand contracts are significantly shorter than in the Mälardalen region.
Trend Reversal: From Housing Shortage to Surplus
One of the most interesting news items for 2025 is that the number of municipalities reporting a surplus of housing has increased.
"As many as 70% of the country's vacant apartments are currently located in municipalities with fewer than 75,000 inhabitants."
This creates a unique situation. While the queues in Stockholm remain miles long, many smaller towns have vacancies, especially in new construction where high rents have made it more difficult to find tenants.
Forecast for 2026: Where Are We Headed?
We predict that the rental market in 2026 will enter a calmer phase. Here are three factors that support this:
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Moderate rent increases: With falling inflation and lower policy rates, rent demands for 2026 are expected to land around 3.5–4.0%, giving households breathing room.
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Tenant's market: In municipalities with a surplus, we may see more "introductory offers" or rent-free months upon signing a new lease – a trend that has already begun to appear in certain northern locations.
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Green focus: More and more landlords in cities like Västerås and Linköping are investing in energy efficiency, which dampens the variable costs for tenants in the long term.
Summary
Renting in a smaller town in 2025 is still the most financially smart choice. With an average rent that is often below 7,500 SEK for a one-bedroom apartment, you have more left in your wallet. If you have the opportunity to commute or work from home, locations like Eskilstuna, Gävle or Borlänge are excellent starting points for an affordable life.
Rent or rent out your apartment today
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