Swedish household wealth hits record as stocks overtake property

Swedish households have never held more wealth, even as political parties campaign on promises to put more money in people’s pockets.

Total household wealth reached 32.7 trillion kronor in the second quarter, the highest level recorded by SEB’s savings barometer. Net wealth, after debts are deducted, rose to 27 trillion kronor, 10% higher than a year earlier. Household debt now equals 17% of assets, the lowest proportion since the measurement began.

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People may not even realize how well things are going until it is over.

The main driver has been the stock market’s strong performance in recent years. Swedish households have unusually large exposure to equities, partly through the pension system and partly because more individuals have invested in shares and funds.

For the first time in three decades, household stock assets exceeded property assets, SEB said. Private economist Américo Fernández called it “a historic shift” driven mainly by gains in global markets rather than a sharp rise in new saving.

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It is a historic shift, driven mainly by the fact that global stock markets have performed so strongly, rather than by a sharp increase in new saving.

The contrast with public mood is striking. Property prices in several parts of Sweden have returned to pre-pandemic levels, while stocks have performed far better. Fernández said pessimism had weighed on property values even as markets projected a more optimistic view of the future.

That shift also increases households’ exposure to losses. A bursting artificial-intelligence bubble or renewed interest-rate fears in the United States could trigger broad stock-market declines. Red figures could make people more pessimistic and restrain consumption, Fernández said.

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The stock market has become detached from the rest of the economy.