Property vacancy rate: benchmarking

Vacancy rate determines profitability

Vacancies cost money. Every day a flat sits empty is a day without rental income – yet operating costs, maintenance and financing costs keep running. For property companies, vacancy rate is one of the most important key metrics for measuring efficiency and profitability.

Vacancy rate is the proportion of empty units in relation to total housing stock, often expressed as a percentage. A low vacancy rate means high occupancy. A high vacancy rate points to problems with market strategy, pricing or the condition of the flats.

What does the industry say?

In Sweden, vacancy rates vary between property companies and regions. A cautious benchmark is that a vacancy rate below 3–5 per cent is considered healthy for most markets. Larger cities such as Stockholm, Gothenburg and Malmö have historically low vacancies due to strong demand, often below 2 per cent.

Small towns and rural areas often have higher vacancies – sometimes 5–10 per cent or more. This is due to lower demand, demographics and the fact that tenants migrate to larger cities.

The cost of a vacancy

An empty flat is not just lost rental income. It is also a cost.

Cost item	Approximate impact
Lost monthly rent	7,000–15,000 SEK/month
Operating and maintenance	Continues unchanged
Property tax/municipality charges	Runs regardless
Financing costs	Interest on loan capital
Marketing the property	500–2,000 SEK per campaign
Administration and viewings	1,000–3,000 SEK

A flat standing empty for three months can easily cost 25,000–50,000 SEK in combined economic impact. Read our guide to what a vacancy actually costs.

Benchmarking: how do you compare your figures?

To know whether your vacancy rate is good or bad, you need to compare it with others.

Use these references:

Your own history – What was your vacancy rate six months ago? A year ago? The trend is often more important than the absolute figure.
Similar property stock – Compare with other companies in the same region and with the same house type (new build, 1970s–80s, central location, suburban area).
Industry reports – Estate agents, SABO (the Swedish Tenants' Union) and larger operators publish regular statistics. The Riksbank and SCB (Statistics Sweden) also present housing market data.
Regional trends – A vacancy rate of 8 per cent may be acceptable in a shrinking small town but unacceptable in Stockholm.

Reduce vacancies – concrete steps

Pricing and market

The most common cause of high vacancies is incorrect pricing. A flat that is too expensive stands empty longer than one that is correctly priced. Investigate what equivalent flats rent for in your area. Do not be afraid to adjust the price downwards temporarily to secure a long-term tenant.

See our guide to reasonable rent (skälig hyra) and how to calculate correctly.

Faster letting process

The longer it takes from when a flat becomes empty to signing a contract, the higher the vacancy cost. Use digital contracts, e-signing and automated tenant screening. This can cut vacancy time by weeks.

Learn about digital rental contracts and automation.

Maintenance standards and presentation

A well-maintained flat lets faster. Investment in good photographs, video tours and clear descriptions increases interest.

Attractive terms

Furnishing options, flexible contract periods and good neighbourly conditions attract tenants. If the flat is in good condition you can also offer shorter minimum terms.

Benchmarking by property type

Vacancies also depend on what type of housing you own:

Small units (1–2 rooms): Many tenants, rapid turnover, often low vacancy rate.
Large family flats (4+ rooms): Fewer potential tenants, longer vacancy time.
Close to public transport: Higher demand, lower vacancies.
Rural or car-dependent location: Less demand, higher vacancies.
New build (higher rents): Often longer vacancy time until the market accepts the price level.

Trend analysis for 2025–2026

The housing market is stabilising. Interest rates have plateaued, and many tenants who were waiting are beginning to sign new contracts. This suggests that vacancy rates should fall over the year, particularly in growth areas.

Read the housing market forecast for 2026.

Practical benchmarking tools

Track your own data – Note vacancy days, move-out dates and new lettings month by month.
Use local company reports – Many larger property companies and property owner associations publish their statistics.
Consult SCB – Statistics Sweden publishes regional rental prices and housing market data.
Network with other property owners – Your local property owner association may share benchmarking data.
Benchmarking reports from estate agents – Operators such as Newsec, JLL and Datscha publish market studies.

Common questions

What is a good vacancy rate for my property company? Below 3–5 per cent is considered healthy in most Swedish markets. In smaller towns, 5–8 per cent may be normal. Always compare with similar property companies in your region.

How much should I reduce the rent to fill an empty flat? It depends on the market, the flat's standard and competition. An adjustment of 3–8 per cent is often enough to attract interest. Always calculate the cost of leaving it empty longer against a lower rent – often a lower rent is more profitable.

What costs more – vacancies or lower rents? It varies, but a flat empty for four months usually costs more than accepting a lower rent for a year. Use the formula: (Lost rent × vacancy months) compared to (Rent reduction × 12 months).

How often should I benchmark my vacancy rate? Month by month is ideal. Many property companies report to the board or owner quarterly. Seasonal effects – higher vacancies in summer, lower in autumn – are also important to track.

This text is general information about property companies and vacancy rates and does not constitute legal advice.