Mixed Housing Alone Will Not Reduce Segregation in Sweden

Efforts to create “mixed neighbourhoods” by combining rental and owner-occupied housing will not be enough to address Sweden’s growing segregation, argues Professor Charlie Karlsson in a recent Göteborgs-Posten article. Real change, he says, requires tackling deeper social and economic inequalities that shape where people live.

In a recent opinion article published in Göteborgs-Posten External link, opens in new window., Professor Charlie Karlsson highlights that introducing mixed housing areas in Sweden will not, by itself, reduce residential and social segregation.

Karlsson explains that segregation is primarily driven by structural factors such as income differences, access to employment, education quality, public services, and safety, rather than by the physical distribution of housing types. Even when rental and owner-occupied homes are combined in the same neighbourhoods, significant economic and social divides often persist.

“Physical proximity does not automatically lead to social proximity,” Karlsson writes. “Households with different resources may live side by side yet continue to lead separate lives.”

He further warns that a narrow policy focus on mixing housing types may have unintended economic consequences. If developers face lower profitability, new construction could decline, resulting in higher housing prices and worsening the shortage of affordable homes.

Instead, Karlsson emphasises the need for a broader policy strategy that tackles the underlying causes of segregation. He highlights three central priorities: increasing the overall housing supply, particularly in high-demand areas, to offer households genuine choice; enhancing local services, schools, safety, and public transport in disadvantaged neighbourhoods; and reducing structural inequalities through targeted reforms in education, labour markets, and income distribution.

According to Karlsson, while mixed housing may make urban areas appear more diverse, sustainable progress against segregation requires addressing the deeper social and economic disparities that shape where and how people live.

Read the full article (in Swedish) here: Göteborgs-Posten External link, opens in new window..

Charlie Karlsson is professor emeritus in industrial economics at Blekinge Institute of Technology.