Cooperative Housing in Sweden: History and DevelopmentCooperative housing in Sweden, also known as tenant-ownership cooperatives, emerged as a response to extreme housing shortages and speculative real estate practices. The system was designed to give people control over their housing situation while ensuring broad access to decent housing. In 1923, tenant organizations founded HSB Riksförbund (HSB) to champion the development of cooperative housing and advocate for policy change.
Early on, HSB pioneered the “mother-daughter” cooperative model, where large cooperatives (mother organizations) developed housing and sold units to smaller cooperatives (daughter organizations). These apartments offered modern features—hot and cold water, gas stoves, and private bathrooms—long before such amenities became standard.
Post-War Growth and Policy Neutrality
After World War II, cooperative housing became a central part of Sweden’s housing development strategy. Riksbyggen, founded by construction workers, entered the scene. In 1945, a landmark decision by Sweden’s housing committee ensured all tenure types—rental, cooperative, or private ownership—received equal subsidies. This tenure neutrality promoted genuine housing choice across income levels.
Several policy mechanisms curbed speculation and kept housing accessible. Cooperative housing gained access to direct subsidies, supporting affordability regardless of residents’ economic status. However, in the 1990s, Sweden phased out direct housing subsidies and overhauled its financing system.
Current Housing Context
Today, Sweden’s housing policy aims to ensure “well-functioning housing markets in the long term.” Cooperative shares have been sold on the open market since the 1970s. In new developments, members typically finance 75–80% of construction costs, while the remaining portion is covered by cooperative loans.
Even though the upfront investment is higher, cooperative housing remains one of the most cost-effective tenure types over time. In 2021, annual housing expenditures averaged SEK 86,000 for single-family homes, SEK 77,000 for rentals, and SEK 73,000 for cooperative housing, confirming its affordability advantage.
Despite this, 87% of Swedes live in municipalities reporting housing shortages, with young people, new immigrants, and the elderly particularly affected. Municipalities cite high construction costs and limited access to land as major barriers.
HSB Stockholm-Brf Hamnkaptenen-Sweden
Characteristics of Cooperative Housing in Sweden
Housing cooperatives in Sweden, especially those developed by HSB and Riksbyggen, share several defining features:
Typically located in urban areas
Consist of 20 to 100 units (average 80)
Own their buildings and land collectively
Require tenant-membership approval from the Board
Offer shares granting unlimited occupancy rights, traded at market value
Charge a monthly fee covering loans, operations, and maintenance
Assign maintenance of common areas to the cooperative and interior maintenance to members
Allow subletting with Board approval
Financing Cooperative Housing in Sweden
Swedish cooperative housing receives no direct government assistance. Members must typically fund 75–80% of construction costs, with co-ops financing the rest through private bank loans. Members often secure loans covering 85% of their down payment.
To support prospective buyers, HSB has a home-saving program. Participants receive priority in new projects. Loans can also be secured using co-op shares as collateral. Meanwhile, HSB Security Guarantee and Riksbyggen protect cooperatives from financial risks by purchasing unsold units.
Additionally, cooperative homeowners benefit from a 30% tax deduction on interest payments.
The Cooperative Housing Act, which governs housing cooperatives’ organizational and financial rules
The Cooperative Societies Act, which regulates the broader structure and conduct of cooperatives
The Cooperative Housing Movement in Sweden
Unlike many countries, Sweden lacks a single national cooperative housing organization. Instead, two dominant entities represent and support the sector: HSB Riksförbund and Riksbyggen.
HSB Riksförbund
HSB operates through a three-tiered structure:
The National Federation oversees strategy, efficiency, and advocacy.
Regional Societies develop and support local housing cooperatives.
Housing Cooperatives make up the base level.
HSB members include individuals saving to buy co-op shares. Upon moving in, they become members of the housing cooperative while retaining their HSB membership.
HSB Membership (2021):
670,000 members (plus ~120,000 home savers)
346,000 cooperative units + 26,000 rental units
4,100 housing cooperatives affiliated with 25 HSB Regional Associations
HSB Living Lab in Gothenburg
Located on the Chalmers University campus, HSB Living Lab is a pioneering research-driven student housing project that blends community living and sustainable innovation
Co‑creative Research Environment Co-developed by HSB, Chalmers University of Technology, and Johanneberg Science Park, this modular five‑story building comprises 29 apartments and shared labs. It invites students and researchers to live in and test green technologies—from smart façades to stormwater systems—over a ten‑year period.
Sustainability & Impact As Sweden’s leading built-environment living lab, it generates real-world insights. Projects have included rainwater biofilters, solar-integrated walls, and next-gen kitchens. Nearly 100 sustainability innovations have been piloted so far, with outcomes directly influencing future housing policies and construction methods .
Occupant-Driven Design HSB Living Lab champions occupant-driven design and data-informed solutions. By embedding innovation in everyday life, it bridges academic research and market-ready sustainable housing models—offering a collaborative blueprint for green, community-centered living.
Riksbyggen
Founded by trade unions in the construction sector, Riksbyggen combines housing development with labor union ownership. It has a two-level structure, with local tenant-owner cooperatives forming regional associations. These bodies handle ownership rights, lobbying, education, and advocacy.
Riksbyggen Membership (2023):
1,750 housing cooperatives
29 delegate bodies
24 local associations, composed of unions and civic organizations
Brf Viva – Riksbyggen
WeEffect
Operating in over 20 countries, WeEffect is the international development agency of Sweden’s cooperative movement. Since 1958 they have been supporting member-based organizations in rural development and adequate housing.
What They Do in Cooperative Housing
1. Strengthening grassroots affordability WeEffect supports self-managed housing cooperatives, where members actively participate in construction, maintenance, and governance. They strengthen groups that advocate for land access, tenure security, public subsidies, and funding for low-income communities
2. Mutual-aid construction models Through mutual aid frameworks, members collaborate on labor and resource pooling to build homes, reducing costs and enhancing solidarity.
3. Advocacy and policy support The organization empowers cooperatives to lobby governments for supportive land-use policies, financial incentives, and legal frameworks.
4. Global partnerships WeEffect collaborates with Swedish umbrella co-op federations (HSB, Riksbyggen) on international housing programs, notably in East Africa and Latin America. They coordinate operations, build local skills, and secure financing for community-led housing
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