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In Sweden, new contracts are arbitrary (new stock or people dying/leaving) so the market is at play then but yearly increases are limited in size (with the exce

In Sweden, new contracts are arbitrary (new stock or people dying/leaving) so the market is at play then but yearly increases are limited in size (with the exception of "standard improving renovations" that are now being mis-used instead to drive out elders). In general it has had it's benefits for safety but you now also have 70-90 year olds that once had families that now are living alone in 120m2 4-5 room apartments that can't move to anything smaller (thus yielding space to a young family) because the rent in anything smaller would be larger than their current rent, so they stay and the housing usage gets skewed.

kevinak 2y ago
This is not correct, new contracts are not arbitrary. They are determined by the "bruksvärdeshyra". (https://www.hyresgastforeningen.se/stod-och-rad/hyra/vad-ar-bruksvardeshyra/ https://www.hyresgastforeningen.se/stod-och-rad/hyra/vad-ar-...)
- tivert 2y ago
  > bruksvärdeshyra Google is translating that as "utility value rent," and it appears to be something calculated by a committee based on the "value" from the tenant's point of view.
- whizzter 2y ago
  Bruksvärdeshyra(utility value) is a tool by lawmakers to punt details away from actual laws, in practice rents become location based so central locations cost more (even if not always as much more as buying would cost). I checked the laws a bit, the utility value is only mentioned for "disagreements" and the comments explicitly mentions raises as the source for disagreements. Thus when signing an initial contract (as i mentioned) the landlord is free to set whatever they feel like since a tenant would have to agree to get the apartment. In practice (not by law) landlords are supposed to give a portion of their available stock to the common queue systems, those apartments seem to follow the utility value with some adjustment for location. However a few years back I was in a separation and since living in Stockholm also a bit desperate and looked at the private landlord queues, the prices were far higher and since I would agree to that initial pricing it would supercede the utility value. Needless to say, I quickly pivoted to buying since that's cheaper in the long run.
kredd 2y ago
Yeah, it’s the same in Vancouver. That being said, they removed yearly increase cap in Toronto in all the new builds since 2018, and it’s still about the same price as here. Or in Calgary where they don’t have it at all, and from what I’ve looked up, rent has increased 14% YoY. I’d be okay if they removed the caps in my city as well, if we didn’t have enormous amount of red tape and barriers to entry to construction. Otherwise the supply goes up slower than the population increase, so percentage of apartments for rent keeps decreasing.

kevinak 2y ago

This is not correct, new contracts are not arbitrary. They are determined by the "bruksvärdeshyra". (https://www.hyresgastforeningen.se/stod-och-rad/hyra/vad-ar-bruksvardeshyra/ https://www.hyresgastforeningen.se/stod-och-rad/hyra/vad-ar-...)

tivert 2y ago
> bruksvärdeshyra Google is translating that as "utility value rent," and it appears to be something calculated by a committee based on the "value" from the tenant's point of view.
whizzter 2y ago
Bruksvärdeshyra(utility value) is a tool by lawmakers to punt details away from actual laws, in practice rents become location based so central locations cost more (even if not always as much more as buying would cost). I checked the laws a bit, the utility value is only mentioned for "disagreements" and the comments explicitly mentions raises as the source for disagreements. Thus when signing an initial contract (as i mentioned) the landlord is free to set whatever they feel like since a tenant would have to agree to get the apartment. In practice (not by law) landlords are supposed to give a portion of their available stock to the common queue systems, those apartments seem to follow the utility value with some adjustment for location. However a few years back I was in a separation and since living in Stockholm also a bit desperate and looked at the private landlord queues, the prices were far higher and since I would agree to that initial pricing it would supercede the utility value. Needless to say, I quickly pivoted to buying since that's cheaper in the long run.

kredd 2y ago

Yeah, it’s the same in Vancouver. That being said, they removed yearly increase cap in Toronto in all the new builds since 2018, and it’s still about the same price as here. Or in Calgary where they don’t have it at all, and from what I’ve looked up, rent has increased 14% YoY. I’d be okay if they removed the caps in my city as well, if we didn’t have enormous amount of red tape and barriers to entry to construction. Otherwise the supply goes up slower than the population increase, so percentage of apartments for rent keeps decreasing.