BRF vs Hyresrätt: Which Is Right for You?

Published by Lusa | March 2026

Sweden has two main ways to have a home: rent it (hyresrätt) or buy into a housing cooperative (bostadsrätt, or BRF). Neither is strictly better. The right choice depends on your timeline, finances, and how much risk you want to carry.

This guide compares both options honestly, with real numbers, so you can make an informed decision.

Hyresrätt: the basics

A hyresrätt is a rental apartment. You sign a lease with a landlord (often a municipal housing company like Stockholmshem, or a private company). You pay monthly rent, and you have no ownership stake.

Tenant protections. Swedish rental law is extremely tenant-friendly. A first-hand lease (förstahandskontrakt) is essentially permanent. You cannot be evicted unless you seriously breach the contract (non-payment, illegal activity, severe disturbance). Rent increases are regulated through annual negotiations between landlord and tenant associations.

No down payment. You don't need savings to start renting. Some landlords ask for a deposit (typically 1-3 months rent), but it's nothing compared to the 15% down payment required for buying.

The queue problem. Getting a first-hand rental contract through Bostadsförmedlingen in Stockholm requires queuing. The average wait time is 10-20 years for attractive locations. In central Stockholm, 20+ years is common. Other cities have shorter queues but the same basic system.

Second-hand rentals (andrahand). Subletting from someone who holds the primary lease or owns a bostadsrätt. Second-hand contracts are available without a queue, but they come with downsides: higher rent (often 10-30% above first-hand), shorter terms (typically 6-12 months), less legal protection, and no guarantee of renewal.

Bostadsrätt: the basics

When you buy a bostadsrätt, you purchase the right to live in an apartment owned by a cooperative (BRF). You pay a purchase price to the seller and a monthly fee (avgift) to the cooperative. You can sell your apartment on the open market, renovate it within limits, and you have a say in how the building is managed.

But you're also a member of the cooperative, which means you share responsibility for its finances. If the BRF has high debt and the avgift needs to increase, you pay more. If major maintenance is needed, the cost is shared among members. Our complete BRF guide for expats explains how it all works.

Cost comparison

Here's a rough example for a 60 m² apartment in Stockholm. Keep in mind that prices vary vastly depending on where in Sweden you buy. A similar flat might cost half as much in Gothenburg or Malmö, and even less in smaller cities:

Owning costs more per month, but there are two crucial differences: the bostadsrätt requires a large up-front investment, and the amortization portion (6,375 kr/month) is actually building equity. After 10 years, you'll have paid down about 765,000 SEK of your loan. With renting, that money is gone.

Use our calculator to model your specific situation with real numbers.

Flexibility

Hyresrätt wins here. You can terminate a first-hand rental with 3 months notice. Second-hand contracts may have shorter notice periods. You walk away with no financial obligations beyond those 3 months.

Bostadsrätt is much less flexible. Selling takes time (typically 1-3 months from listing to handover), and you're exposed to market risk. If property values have fallen since you bought, you may sell at a loss. Transaction costs (agent fee, typically 1.5-3% of sale price) eat into your return.

If you're not sure how long you'll stay in Sweden, this is a significant factor. Buying and selling within 2 years is almost always a losing proposition after transaction costs.

Financial exposure

With a bostadsrätt, you're exposed to several financial risks that don't exist with renting:

Interest rate risk. Your personal mortgage and the BRF's loans both react to rate changes. If rates rise, your cost goes up twice: higher personal interest payments and higher avgift.

BRF financial risk. If the cooperative is poorly managed, has high debt, or faces unexpected maintenance costs, you share the burden through avgift increases. You have a vote at the annual meeting, but you can't control the outcome.

Market risk. Property values fluctuate. Stockholm apartment prices fell about 15% in 2022-2023 before recovering partially. If you need to sell during a downturn, you may take a loss.

With hyresrätt, your financial exposure is limited to the rent. If you lose your job, you have a fixed, predictable cost to manage. There's no asset to sell at a loss and no cooperative fees that might suddenly increase.

The queue problem

In theory, hyresrätt sounds ideal for a newly arrived expat: no down payment, no ownership risk, strong tenant protections. In practice, the queue system makes first-hand rentals nearly inaccessible.

If you're moving to Stockholm, you won't get a first-hand rental contract unless you've been in the queue for 10-20 years. That leaves second-hand rentals: available immediately but more expensive, less secure, and often short-term.

This is the main reason many expats end up buying a bostadsrätt. Not because it's necessarily the better financial choice, but because it's the most accessible path to a stable, long-term home.

Other cities (Gothenburg, Malmö, Uppsala) have shorter queues, and in smaller towns, first-hand rentals may be available without waiting.

When to buy, when to rent

Buying makes sense if:

• •You plan to stay in Sweden for at least 3 years.
• •You have the 15% down payment saved.
• •You want to build equity rather than paying rent with no return.
• •You can absorb a potential avgift increase of 20-30% without financial stress.
• •You have a stable job and income in Sweden.

Renting makes sense if:

• •You're uncertain about how long you'll stay.
• •You don't have savings for the down payment.
• •You want maximum flexibility and minimal financial risk.
• •You're new to Sweden and still learning how the market works.
• •You can find a reasonable second-hand rental, or you have access to a first-hand contract.

If you decide to buy

Start with these guides:

• •Swedish mortgage rules for expats for everything about getting a loan.
• •BRF explained for expats to understand the cooperative structure.
• •Understanding a BRF annual report to read the financial documents.
• •Our calculator to model your total monthly cost.

Lusa is a Swedish web tool for apartment buyers. The information on this page is based on publicly available data from Bostadsförmedlingen, Finansinspektionen (FI), and Swedish tenancy law (Hyreslagen/Jordabalken 12 kap). Nothing on this page constitutes financial or legal advice.