Housing association fees are on the rise, with an average increase of 2.5% at the start of the new year. This may seem like a modest hike, but it marks the lowest increase in several years, according to a comprehensive analysis by the leading property management firm, Nabo, which studied 2,700 associations.
The decrease in interest rates has provided some relief for these associations, allowing them to catch their breath. However, Jonas Gustavsson, the chief economist at Nabo, warns that it may be premature to celebrate. The current level of savings within these associations is alarmingly low, insufficient to cover future maintenance costs and other expenses.
In 2023, the average savings per square meter for these associations stood at 126 SEK. Looking ahead to 2024, Nabo predicts that these numbers will hit record lows. The property management firm recommends a savings target of over 300 SEK per square meter, while industry players like HSB Stockholm suggest that a range of 250-300 SEK is more reasonable.
Gustavsson emphasizes the critical issue of savings not aligning with maintenance needs, highlighting the potential consequences of increased debt and significant fee hikes when major repairs become necessary.
As the housing market continues to evolve, it is essential for these associations to prioritize financial planning and prudent management of resources. By addressing these challenges proactively, they can ensure the long-term sustainability and financial health of their communities.