BoKlok Oct29

BoKlok

In the States, we’ve imported several great things from Sweden. Flat-pack furniture makes our rentals feel like home, and True Blood wouldn’t be the same without Alexander Skarsgård. But if you haven’t considered how Swedish imports could improve the quality and availability of subsidized housing, now is the time. The value of inexpensive housing Per a recent survey of 200 metros around the world, 90% of cities are considered “unaffordable.” Average housing prices are more than three-times median incomes in most neighborhoods. In the U.S. alone, The Harvard Joint Center for Housing Studies reveals that 38.9 million households are cost-burdened, spending more than 30% of their income on housing. For low income households, affordable rentals are hard to obtain. In the U.S., there are roughly 36 available affordable units for every 100 extremely low-income renter households. The National Low Income Housing Coalition reports a shortage of 7 million affordable rentals. The National Multifamily Housing Council and National Apartment Association (NAA) express a need for a more conservative 4.6 million new units by 2030. As city planners seek development and housing strategies that offer efficiency, quality and returns, they may find inspiration in Sweden. The BoKlok method could bridge the gap between what cities need, what cities can afford and what low-income renters can pay. Affordable housing, Ikea style BoKlok, a joint venture of Ikea and Swedish construction company Skanska, has successfully completed 11,000 homes throughout Sweden, Finland and Norway. The portfolio includes a senior housing collaboration with Queen Silvia of Sweden. BoKlok brings the IKEA model to senior and affordable housing. The company keeps prices low by focusing on high volume and complete supply chain management: it controls land acquisition, product development and manufacturing. Large volumes and ample repetition facilitate fast turnarounds and low production costs. The venture also controls...