Rising Youth Evictions in Sweden Linked to Financial Illiteracy and Strain on Resources
Evictions among Swedish youth rise due to financial challenges and illiteracy.
Key Points
- • Evictions up 10% among youth due to unpaid rent in 2024.
- • Payment reminders have increased tenfold since 2021.
- • Many young people lack understanding of the consequences of unpaid bills.
- • Student support purchasing power has decreased by 40% since the 1990s.
In Sweden, the alarming trend of evictions among young people is escalating, primarily driven by unpaid rent and a noticeable lack of financial literacy. A recent report by debt collection agency Intrum highlights that the number of payment reminders for unpaid rent has surged tenfold since 2021, with housing debt collections skyrocketing twentyfold during the same timeframe. This troubling trajectory has led to a situation where, in 2024, 10% of unpaid housing debt cases culminated in eviction, a significant rise from just over 2% in 2022, affecting many under the age of 25.
Reports indicate that early 2023 saw a surge of young individuals grappling with rental debt, matching the total number recorded in all of 2022, illustrating the growing financial pressures on youth. Reetta Lehessaari, head of collection services at Intrum, emphasizes that many young people fail to comprehend the severe repercussions of unpaid bills. She further stresses that as little as two instances of unpaid rent can lead to eviction, a situation that not only displaces them but also complicates their ability to secure housing in the future due to negative credit histories.
Adding to this complexity, Sakari Ropponen from Aalto University's student union points out that the purchasing power of student support has plummeted by approximately 40% since the 1990s, worsening financial conditions for students. This decline necessitates that many students work while studying, further straining their capacity to manage their finances.
In response to the ongoing crisis, Aalto University's student union has taken proactive measures by providing housing for over 3,000 students across more than 2,500 units. They have developed educational programs aimed at helping new tenants better manage their housing finances, which have reportedly received positive feedback and resulted in fewer issues relating to unpaid rent within their accommodations.