Framework procurements and their effect on the Swedish housing market – An analysis of SABO Kombohus Bas
Sweden is suffering from a large housing shortage due to urban population growth and low levels of new construction. Public housing companies play a major role on the market with their 46 percent share of the rental market. The production of rental apartments is especially problematic since profitability is limited. The low levels of new supply could be explained by high construction costs since they have reached levels that now inhibit the building of new rental apartments. One approach to increasing the supply of rental apartments on the Swedish housing market is by introducing framework procurements for turnkey ready multi-family housing. The effect of such framework procurement is researched, analyzed and put in relation to theories in the field of real estate economics, urban spatial theory, industrialized housing construction and competition. The objective of this thesis is to contribute to the field of research and increase the knowledge of supply side factors on the housing market. To fulfill the purpose of this thesis, analysis has been conducted with a mixed method approach, using a survey and interviews to reach all the public housing companies that have used the framework procurement Kombohus Bas. The case was chosen because it is a framework procurement for turnkey ready multi-family housing. Kombohus Bas has been developed by the Swedish Association of Public Housing Companies in order to try to help the public housing companies increase the supply of rental apartments. Research results show that the framework procurement Kombohus Bas has increased the number of rental apartments on the Swedish housing market, most importantly because it has lowered the production costs, as well as simplified and shortened the process of building housing. Thus, the use of framework procurements for turnkey ready multi-family housing could reduce the housing shortage.
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