Sweden’s best locations for first-time homebuyers

So you’ve decided to buy your first home! You’ve considered all the pros and cons (if you’re still a bit unsure, this checklist will help) and now you are in the process of figuring out what comes next. Like, where should your new home be located?

For many of us, home is where the work is. Meaning, we first find our dream job and then solve the pesky issue of accommodation by moving somewhere nearby. Isn’t that how it usually goes? Yet, important as your dream job may be, when you’re about to become a first-time home buyer you’re suddenly faced with many more parameters to consider…

To begin with, how’s the real estate market in Sweden nowadays?

Does it differ significantly from county to county? (Spoiler alert: it totally does.) Will you be able to afford a home with enough space for your soon-to-be-growing family? Because, as numbers have it, 60% of homeowners are cohabiting with children — which goes to show that the decision to buy your first home is usually closely connected to your decision to start or expand your family.

Speaking of family: what about the area your kid(s) will one day grow up in? Is it safe? Shouldn’t you choose a location with good access to schools, hospitals and daycare facilities? Shouldn’t you have relatives within a short driving distance, in case of emergencies?

Then, of course, there is the aforementioned issue of work seeing as, especially now, you will need to have a certain level of financial stability. Not every city/municipality in Sweden offers a competitive labor market with job opportunities in your niche — and the places that do, may not check all the boxes mentioned above. A spacious house in a calm suburb may be affordable, for example, but it probably won’t offer much in the way of spectacular career opportunities. Likewise, an apartment in a big city will give you great access to care facilities and allow you to find work easier, but it will likely cost more (and perhaps be less safe)…

At this point, you’re probably throwing your hands in the air in frustration, right?

Well, don’t. Deciding on the perfect location for the first home you ever buy, can be simpler than you think. You just need to be realistic about which one(s) of all the different parameters of an ideal location you should prioritize. That’s where Nesta_ comes in!

On this article, you’ll learn more about which cities and locations in Sweden score best in three different factors: real estate prices, job opportunities and overall security and quality of life. That way, you can find the location that’s truly the best match for your needs — and then you can use our pinpoint based location search like a boss!

If you’re looking… for competitive real estate prices

As you may have already heard by everyone who’s been complaining about it since 1995, there has been a steady increase in real estate prices in Sweden. In fact, it’s been about 2% each quarter since 2015, 3% in the quarter of May-July 2019. Thankfully, this trend seems to be discontinuing and, as of August, the housing index is in decline. Woohoo?

Certainly, this is good news. But before making any decisions, you need to be aware that there are big discrepancies between housing prices across different counties. For instance, although the average price for one- or two-dwelling buildings in Sweden was around 3.1 million SEK in 2018, some counties average purchase prices are around 6 million SEK whereas in other areas you can find good options with 500,000–1 million SEK, or even less!

It will probably come as no surprise then, that if you want to avoid paying a lofty fortune for your first home, you shouldn’t bother looking in center Stockholm or the Stockholm archipelago (6 million SEK and more). Also on the expensive end are houses in the greater Stockholm area, Uppsala, Gothenburg, coastal Gothenburg, Malmö and Lund (4–6 million SEK).

That’s okay though! Sweden is a big country and there are many great, off-center locations for you to explore your real estate options.

P.S. If you still dream of living in the big cities though, no drama! We can always help you afford your first home with a special Nesta_ deal.

The best cities/locations for you:

If your ideal budget is around 500,000–1 million SEK, you will be pleasantly surprised to know that there are many places in the north and middle of the country that you could consider.

If you enjoy the cooler climate of the north, you should be looking at Norrbotten County, in areas such as Pajala, Kalix, Haparanda, Jokkmokk, Arjeplog, Arvidsjaur, Älvsbyn or in Västerbotten County, in areas such as Vilhelmina, Storuman, Sorsele, Malå and in Västernorrland County, in areas such as Sollefteå and Kramfors.

Moving towards the center of Sweden you can find many economical options in Värmland County, in places such as Torsby, Hagfors, Filipstad, Storfors and Säffle. You should also be looking in Gavleborg County (Nordanstig), Jämtland County (in places such as Bröcke, Berg, Härjedalen) and at the east side of Småland County — but not in Åland, where real estate prices average 4 million SEK.

Now, if your ideal budget is less than 500,000 SEK your choices are a bit more limited, but you shouldn’t be discouraged! Look at Norrbotten County (Överkalix, Övertorneå), Västerbotten County (Dorotea, Åsele, Bjurholm, Norsjö), Jämtland County (Strömsund, Ragunda) and Västernorrland County (Ånge).

If you’re looking… for job opportunities

We get it. You have to feed yourself and your family — but also your soul. And finding a job that makes you happy and keeps the lights on at your new home will be infinitely easier in more metropolitan areas. Right?

Yes and no. Because so many people move to Sweden’s bigger metropolitan areas (for the same reasons you are considering it right now), the labor markets in those areas are becoming saturated and thus the rate of jobs per capita has started to decrease. The worst “offender” in this case is Malmö: Sweden’s third-largest city actually has the lowest job per capita rate in the whole country, at 67.3% (and subsequently, the highest unemployment rate in the country as well. Gothenburg is doing a bit better with a 76.5% job per capita rate, but still not as good as smaller cities even in its own county.

Of course, if you’re willing to gamble with quantity for the sake of quality of jobs offered, this shouldn’t deter you much. If however, you want to play it safe, it’s better to look at places with a higher job per capita rate. Thankfully, you don’t have to look far; we found them for you!

The best locations for you:

Stockholm county has a rate of 80.2 % of jobs per capita. However, you may be more lucky in finding work in Stockholm county suburbs such as Nykvarn (which has the higher job per capita rate in the country at 87.9 %) than in Stockholm city (where the job per capita rate is 79%).

Halland County, just south of Gothenburg, is also a great option with an 83.2% job per capita rate. In fact, Kungsbacka, which is the seat of the municipality, has the highest job per capita rate in the whole country, at a whopping 87.8%!

All that being said, you should keep into consideration that many people (like, 34% of them) don’t actually live where their work is: they choose to commute instead. This will certainly give you more flexibility in finding the perfect location for your first home!

If you’re looking for… safety and quality of life

Let’s start off by saying: Sweden is safe. Sure, big cities have their share of crime and unfortunate incidents, but the numbers are still low compared to other European cities of similar size. However, if you’re envisioning a calm and safe life for your family, you may choose to buy a house closer to nature; in the suburbs, rural areas or even farmlands.

The best locations for you:

The Stockholm suburbs of Nykvarn and Lidingö have been repeatedly featured in various “most safe” lists, whereas Habo, a municipality north to Jönköping has been voted “the safest” in past years.

Another great option is Skåne county. If you avoid big cities such as Malmö and Helsingborg, the almost infinite farmlands of Skåne offer affordable prices for off-the-grid houses — with the added benefit of a more mellow climate and good transportation throughout the county.

In the end, there are many places where you could choose to buy your first home. No matter where you end up though, if you need help with the mortgage, we at Nesta_ are here to help!

Take a look at what you could afford today (based on what you spend on rent) with the help of our budget calculator.