The Swedish construction industry is undergoing a major transformation in 2026. As the sector recovers from a downturn and large infrastructure investments get underway, companies face an acute challenge: securing housing for foreign workers. In this guide we cover the legal requirements, the practical solutions and the common mistakes to avoid.
Why housing for foreign workers has become a pressing issue in 2026
The Swedish construction market is in a unique position where several factors are creating strong demand for foreign labour at the same time as housing options are limited.
Infrastructure investments and rising demand
The Swedish government has presented the national transport infrastructure plan for 2026–2037, allocating SEK 1,171 billion to Sweden's infrastructure. Major projects such as Norrbotniabanan (the North Bothnia Line), Ostlänken (the East Link) and Förbifart Stockholm (the Stockholm Bypass) are running in parallel, creating enormous demand for construction labour.
While the number of posted workers has fallen in the metropolitan counties, Norrbotten and Gävleborg have seen the largest increases. This reflects the major infrastructure investments in northern Sweden.
The skills shortage in the construction sector
In the construction and civil engineering sector, the situation is particularly serious: 76 percent of the member companies of Byggföretagen (the Swedish Construction Federation) report that recruiting is difficult, and one in four recruitment attempts fails completely. This is according to the 2025/2026 recruitment survey by Svenskt Näringsliv (the Confederation of Swedish Enterprise).
“The skills shortage will become the greatest threat to both the pace of construction and the development of society. When one in four recruitment attempts fails and companies are forced to turn down contracts, there are direct consequences for housing construction, infrastructure and the climate transition.”
In 2025, the number of posted workers in Sweden reached nearly 75,000, according to Arbetsmiljöverket (the Swedish Work Environment Authority), with a large share of the increase in construction and manufacturing. This trend is expected to continue in 2026 as the infrastructure projects accelerate.
Legal requirements: What you need to know
Employing and hosting foreign workers involves several legal obligations. Mistakes here can lead to fines, project delays and lost contracts.
The posting register (utstationeringsregistret)
In February 2026, the government tasked Arbetsmiljöverket (the Swedish Work Environment Authority) with improving the quality of and access to the information in the posting register, in order to strengthen efforts against labour market crime and reduce the vulnerability of workers.
Foreign employers must report postings to Sweden to Arbetsmiljöverket (the Swedish Work Environment Authority) before work begins. This applies regardless of whether the worker comes from an EU country or a third country.
ID06 cards: New requirements from 2026
As of 28 January 2026, new security requirements apply when ordering ID06 cards: every person must identify themselves with a valid passport or a national ID card that is accepted as a travel document within the EU/EEA.
All personnel present and working within project areas must carry a valid, personal ID06 card, which is essential to ensure that only authorised personnel are on site.
Collective agreements and wage requirements
When employing foreign labour, the employer must ensure that the terms of Swedish collective agreements are followed. This includes pay, working hours, holiday and insurance. For posted workers, Swedish law and Swedish collective agreements apply even if the employer is foreign.
Read more about contract requirements in our guide: Contract requirements for worker accommodation 2026.
Types of housing: Different options for different needs
The choice of housing affects cost, wellbeing and project success. Here are the most common solutions with their pros and cons.
| Housing type | Cost/person/month | Advantages | Disadvantages |
|---|---|---|---|
| Worker accommodation (modular units/apartments) | SEK 8,000–15,000 | Flexible, scalable, sense of community; utilities and services are typically included – the exact scope is agreed per project | Requires planning, initial investment, permits |
| Hotel | SEK 18,000–35,000 | Quickly available, no administration of your own | Very expensive, no cooking facilities, socially isolating |
| Own rental apartment | SEK 12,000–25,000 | Independence, more privacy | Hard to find, requires a deposit, long queues |
| Block rental via StayOnSite | From SEK 5,900 | 0% fee, guaranteed rent, professional management | Limited to certain cities (growing network) |
For a more detailed cost comparison, see our article: Worker accommodation vs hotels: Cost comparison.
Worker accommodation: The growing solution
Worker accommodation has become the most popular solution for construction projects with many foreign workers. It can range from modular housing on the construction site to block-rented apartments in nearby towns.
The advantages are many: the workers live close to one another, which builds community; the cost is lower than hotels; and administration is simplified when a single provider manages the housing. There are also often shared spaces for cooking, which both lowers costs and improves wellbeing.
For infrastructure projects in northern Sweden, worker accommodation is often the only realistic solution. Read more in our guide: Complete guide to worker accommodation 2026.
Practical checklist: What must be in place
Good housing for foreign workers is about more than beds. To ensure wellbeing, safety and productivity, several factors need to be in place:
Basic facilities
- Own bedroom or a maximum of 2 people per room – Sleep is critical for safety and performance
- Fully equipped kitchen – Cooking matters both economically and culturally
- Laundry facilities – Washing machine and drying room/tumble dryer
- Bathroom with hot water – At least one shower per 4–6 people
- Common areas – Space to socialise after the working day
Connections and services
- Wi-Fi with good capacity – Staying in touch with family back home is vital for wellbeing
- Electricity and heating – Obvious, but they must work reliably
- Waste collection and cleaning services – Regular cleaning days prevent problems
- Parking – If the workers have their own cars or are provided with transport vehicles
Transport to the workplace
Critical for projects outside urban areas:
- The housing should be no more than 30 minutes from the workplace
- Organised transport if there is no public transport
- A car pool or company vehicles for larger projects
- Cycling distance works in summer in cities
For infrastructure projects along Norrbotniabanan (the North Bothnia Line) or Ostlänken (the East Link), transport is often the biggest logistical challenge. Many construction companies solve this by hiring buses or minibuses for the daily commute between the housing and the site. Read more: Worker accommodation checklist for infrastructure contracts.
Safety and wellbeing: Undervalued success factors
Housing that works is about more than square metres and beds. Wellbeing and a sense of security directly affect project success through reduced sick leave, lower staff turnover and higher productivity.
Language support and cultural integration
Many foreign construction workers come from Poland, Lithuania, Latvia and other EU countries. Offering basic Swedish lessons, or at least providing information in their native language, creates a sense of security.
- Information material about the housing in several languages
- A contact person who speaks the workers' language
- An introduction to Swedish culture and local rules
- Information on where to find food shops, pharmacies and healthcare centres
Work environment and recovery
Construction work is physically demanding. Good housing must allow for recovery:
- Quiet environment – Important for those working shifts
- Sleep rules – Clear rules on noise after 22:00
- Opportunity to exercise – A gym or training space is appreciated
- Recreation areas – TV room, barbecue area, outdoor space
Safety and insurance
As an employer or project owner, you are responsible for the workers' safety outside working hours as well, if you provide the housing. Make sure that:
- Fire protection and escape routes are approved
- The right insurance policies are in place
- Emergency contact details are available
- Regular safety rounds are carried out
Read more about insurance and liability: Insurance and liability for worker accommodation.
Costs and budgeting
Housing is often one of the largest cost items after wages. Budgeting correctly from the start is essential.
Typical costs per month and person
- Worker accommodation: SEK 10,000–15,000 – typically includes rent, utilities and services; the exact scope is agreed per project
- Hotel (incl. breakfast): SEK 20,000–35,000
- Own apartment + set-up costs: SEK 15,000–25,000
- On-site modular housing: SEK 8,000–12,000
Hidden costs to consider
- Transport: SEK 2,000–5,000 per person per month if there is no public transport
- Administration: Time spent managing leases and payments
- Electricity and heating: Often included in worker accommodation but not in private apartments
- Initial equipment: Bed linen, kitchen utensils, cleaning supplies
- Cleaning: SEK 500–1,500 per week depending on size
Tax considerations
Housing provided by the employer may be taxable for the employee depending on how it is structured. Always consult a tax adviser, but in general:
- Temporary housing for temporary assignments is often tax-free
- Permanent housing may be taxed as a benefit in kind
- Shared housing for several workers is often treated more favourably
For homeowners who let via block rental, a standard tax deduction applies: Standard deduction and tax on block rental 2026.
Common mistakes to avoid
Based on experience from hundreds of construction projects, we see the same mistakes repeated. Here are the most important ones to avoid:
1. Waiting too long to arrange housing
The mistake: Many construction companies start looking for housing 2–4 weeks before the project starts.
The consequence: In cities with major infrastructure expansion such as Luleå, Kiruna, Boden and Skellefteå worker accommodation is often fully booked months in advance. The result is expensive hotel solutions or delays.
The solution: Start planning housing at least 3–6 months before project start. For large projects (50+ people), even earlier.
2. Saving on the wrong things
The mistake: Choosing the cheapest option without looking at the whole picture.
The consequence: Dissatisfied workers with poor sleep, long commutes and no cooking facilities lead to higher sick leave, a worse work environment and increased staff turnover. The SEK 2,000/month you "saved" quickly costs SEK 20,000 in lost productivity.
The solution: Invest in basic comfort: own room, cooking facilities, proximity to the workplace.
3. Poor communication
The mistake: No clear information for the workers about house rules, waste handling, quiet hours, guests and so on.
The consequence: Conflicts between workers, complaints from neighbours, problems with landlords.
The solution: Written rules in the workers' native language + a walkthrough on arrival. A designated contact person for housing questions.
4. Forgetting the ID06 requirement
The mistake: Not ensuring that all workers have valid ID06 cards before work starts.
The consequence: Failure to comply with these requirements can result in personnel being denied access to the workplace, which can cause delays to the project.
The solution: Start the ID06 application at least 3–4 weeks before work begins, especially given the new requirements from 2026.
5. Ignoring local conditions
The mistake: Using the same housing solution everywhere without considering local circumstances.
The consequence: Housing that works perfectly in Stockholm can be completely unsuitable in Gällivare in winter (transport, heating, grocery access).
The solution: Visit the location or consult local partners. StayOnSite has local knowledge in all the towns where we operate and can give concrete advice tailored to your project's specific conditions.
“The lack of the right skills risks slowing down future infrastructure investments and, with them, the continued development of municipalities and regions.”
Regional overview: Where is demand greatest?
The need for worker accommodation varies greatly by region. Here is a quick overview of the biggest areas in 2026:
Northern Sweden: Enormous demand
Norrbotniabanan (the North Bothnia Line) is under construction, with traffic starting on the Umeå–Dåva section in 2026, while the entire project is expected to be completed in 2032 at a total cost of SEK 43 billion. Together with mining establishment and data centres, this is creating enormous demand.
- Luleå – Data centres and the North Bothnia Line
- Kiruna – Mining expansion and city transformation
- Boden – Defence investments and infrastructure
- Skellefteå – Battery industry and power infrastructure
- Umeå – The North Bothnia Line and university growth
Read more: The green transition in the north: The housing challenge.
Central Sweden: The East Link and data centres
- Linköping – End point of Ostlänken (the East Link)
- Norrköping – The East Link and logistics expansion
- Gävle – Port expansion and rail
- Eskilstuna – The Mälaren Line and industrial establishments
See our map: Infrastructure and worker accommodation: Map 2026.
Metropolitan regions: Housing construction and metro expansion
- Stockholm – Metro expansion and the Stockholm Bypass
- Gothenburg – Västlänken (the West Link) and port expansion
- Malmö – Fehmarnbelt preparations
- Uppsala – University expansion and housing construction
StayOnSite: Your partner for worker accommodation
At StayOnSite we understand the unique challenges facing the construction industry in 2026. Since 2016 we have helped hundreds of construction companies find secure, cost-effective housing solutions for their workers.
Why companies choose StayOnSite
- 0% brokerage fee – We charge no fee to companies looking for housing
- Guaranteed rent for homeowners – Secure and predictable
- Professional tenants – Established construction companies with employed workers
- Fast response – We always get back to you within one business day – often within hours. Time is money in construction
- Local knowledge – We know the market in every town where we operate
- End-to-end support – We assist all the way from agreement to move-in
Where we operate in 2026
Stockholm, Gothenburg, Malmö, Uppsala, Västerås, Örebro, Linköping, Helsingborg, Jönköping, Norrköping, Gävle, Luleå, Kiruna, Boden, Skellefteå, Gällivare, Umeå, Eskilstuna, Karlstad, Halmstad, Östersund, Lund, Falun, Ludvika, Örnsköldsvik, Motala, Oskarshamn, Mönsterås, Västervik, Nyköping, Säffle, Vingåker.
How it works
- Contact us – Call 076-249 84 86 or visit our corporate housing page
- Tell us about your project – Number of people, period, location, special requirements
- Receive proposals – We always get back to you within one business day – often within hours – and match you with suitable housing
- Visit and inspect – See the housing before you decide
- Sign the agreement – A simple, clear lease
- Move in – Welcome home!
Would you like to rent out your property to construction companies? Read more at stayonsite.se/for-husagare about the benefits of block rental via StayOnSite.
Read more about worker accommodation and block rental
- Complete guide to worker accommodation 2026
- Frequently asked questions about worker accommodation for construction companies
- Labour immigration June 2026: A guide for construction companies
- The skills shortage in the construction sector 2026: A practical recruitment guide
- Block rental for infrastructure projects: The East Link and the North Bothnia Line
- Data centres and installer housing: Guide 2026
- Regional housing analysis 2026: Where is there housing for installers?
- The infrastructure plan 2026–2037: What does it mean for worker accommodation?
- The new Tenancy Act July 2026: A guide for companies with worker accommodation
- Prepare your property for block rental during the infrastructure boom
Do you need housing for your foreign workers?
StayOnSite helps construction companies find secure, cost-effective housing solutions across Sweden. We charge companies 0% in fees and always get back to you within one business day – often within hours.
Call us on 076-249 84 86 or visit our corporate housing page for more information. Do you have a property to rent out? See stayonsite.se/for-husagare.