{"id":25645,"date":"2020-10-29T05:21:19","date_gmt":"2020-10-29T12:21:19","guid":{"rendered":"https:\/\/www.yardi.com\/blog\/?p=25645"},"modified":"2026-02-22T15:30:19","modified_gmt":"2026-02-22T23:30:19","slug":"boklok","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/boklok\/","title":{"rendered":"BoKlok"},"content":{"rendered":"<p>In the States, we\u2019ve imported several great things from Sweden. Flat-pack furniture makes our rentals feel like home, and <em>True Blood <\/em>wouldn\u2019t be the same without Alexander Skarsg\u00e5rd. But if you haven\u2019t considered how Swedish imports could improve the quality and availability of subsidized housing, now is the time.<\/p>\n<p><strong>The value of inexpensive housing<\/strong><\/p>\n<p>Per a <a href=\"https:\/\/www.lincolninst.edu\/sites\/default\/files\/pubfiles\/kallergis_wp18ak1.pdf\">recent survey<\/a> of 200 metros around the world, 90% of cities are considered \u201cunaffordable.\u201d Average housing prices are more than three-times <img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-25646 size-medium\" src=\"https:\/\/www.yardi.com\/blog\/wp-content\/uploads\/sites\/15\/2020\/09\/boklok-vallda.jpg?w=300\" alt=\"\" width=\"300\" height=\"225\" \/>median incomes in most neighborhoods. In the U.S. alone, The Harvard Joint Center for Housing Studies reveals that <a href=\"https:\/\/www.curbed.com\/2017\/6\/16\/15816166\/housing-study-harvard-affordability-homeownership\">38.9 million households are cost-burdened<\/a>, spending more than 30% of their income on housing.<\/p>\n<p>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\u00a0low-income\u00a0renter households. The National Low Income Housing Coalition reports a\u00a0shortage\u00a0of 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.<\/p>\n<p>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.<\/p>\n<p><strong>Affordable housing, Ikea style <\/strong><\/p>\n<p>BoKlok, a joint venture of\u00a0Ikea\u00a0and Swedish construction company Skanska, has successfully completed 11,000 homes throughout Sweden, Finland and Norway. The portfolio includes <a href=\"https:\/\/www.yardi.com\/blog\/news\/dementia-care-reimagined\/25401.html\">a senior housing collaboration with Queen Silvia of Sweden.<\/a><\/p>\n<p>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 assembly at the sites, sales and marketing of the final product.<\/p>\n<p>Additionally, prefab units make the most of high-cost, low availability metropolitan land. BoKlok can construct three times as many units on the same footprint as conventional development and construction.<\/p>\n<p><a href=\"https:\/\/resources.yardi.com\/documents\/job-cost-brochure\/\">Learn how to control costs, track budgets and improve profitability on your next affordable project<\/a>.<\/p>\n<p>Back in 2017, <a href=\"https:\/\/group.skanska.com\/49837a\/siteassets\/investors\/reports-publications\/annual-reports\/2017\/annual-review-2017-usd.pdf\">BoKlok experienced \u201cgreat returns,\u201d<\/a> and has built upon that reputation. Expansion into the U.K. is scheduled for January 2021.<\/p>\n<p>The expansion includes about 160 houses on a <a href=\"https:\/\/www.yardi.com\/blog\/news\/building-economic-resilience\/24526.html\">successful mixed-income housing model<\/a>. About 30% would be allotted for public housing with the remainder on the BoKlok Left to Live income-based payment schedule. With Left to Live, residents pay about one-third of their income towards rent which is then funneled towards their 25-year mortgage.<\/p>\n<p><strong>Why cut-and-paste affordable housing strategies may (not) work in the U.S.<\/strong><\/p>\n<p>Income-based housing models have experienced success is in the U.S., and few include mortgage payment options. While both factors may bolster optimism, other factors pose barriers to entry for BoKlok and similar models.<\/p>\n<p>In the U.S., the failure of affordable housing is closely tied to socio-economic and political challenges. NextCity, a nonprofit news organization promoting equitable cities, explains <a href=\"https:\/\/nextcity.org\/daily\/entry\/better-public-housing-lessons-failure-success-us-world\">why affordable housing in the U.S. faces inherent barriers<\/a>:<\/p>\n<p>\u201cWhen the U.S. government became active in the housing market in the 1930s, Congressional conservatives in alliance with the real estate industry ensured that the Wagner Public Housing Act of 1937 restricted public housing to the service of the poor living in already impoverished areas (ensuring a weak political base), tightly limited funding per unit, and gave local governments near complete control over whether to accept federal funds for housing, where to place the sites, and how to administer them. It is the straightjackets on public housing, paired with the intense residential segregation, that so badly disadvantaged these policies in the U.S.\u201d<\/p>\n<p>In terms of the aforementioned practices and policies, not enough has changed since the 1930s. Though BoKlok\u2019s Ikea-style development, construction and sales process could notably cut costs and expedite the creation of subsidized units, there is little to address housing\u2019s historic entanglements.<\/p>\n<p>Additionally, experts explain that the <a href=\"http:\/\/apps.urban.org\/features\/cost-of-affordable-housing\/\">lack of affordable housing development also stems from cost constraints<\/a>, not the least of which includes rising land and materials costs. \u00a0The venture\u2019s land leasing process, which relies on donated and discounted land, is admirable yet difficult (at best) to scale.<\/p>\n<p><strong>Housing solutions may be more of a collage than a copy<\/strong><\/p>\n<p>There isn\u2019t a single silver bullet for the affordable housing dilemma around the world. In the U.S., innovative thinkers in the industry make progress through a combination of efforts. From <a href=\"https:\/\/www.yardi.com\/blog\/news\/tiny-homes\/25367.html\">tiny homes as essential housing<\/a> to <a href=\"https:\/\/www.yardi.com\/blog\/news\/affordable-housing\/18286.html\">unprecedented funding strategies<\/a>, organizations fill demand through creativity and grit. BoKlok offers an additional way to address what cities need, what cities can afford and what low-income renters can pay.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the States, we\u2019ve imported several great things from Sweden. Flat-pack furniture makes our rentals feel like home, and True Blood wouldn\u2019t be the same without Alexander Skarsg\u00e5rd. But if you haven\u2019t considered how Swedish imports could improve the quality and availability of subsidized housing, now is the time. The value of inexpensive housing Per [&hellip;]<\/p>\n","protected":false},"author":440,"featured_media":25646,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3236,2844],"tags":[26,34,2897],"class_list":["post-25645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affordable-housing","category-global","tag-affordable-housing","tag-international","tag-sweden"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Yardi Blog<\/title>\n<meta name=\"description\" content=\"In the States, we\u2019ve imported several great things from Sweden. 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