Skövde was also crowded, and families with children in particular were living in cramped conditions. In 1943, the Drätselkammaren (the equivalent of today’s municipal council) decided that a public housing company was needed. Skövdebostäder was founded. The board included, among others, Walter Sundström and Gustav Lake. Sundström was formally the chairman, while Lake was the one who carried out the practical work, as Sundström spent much of the year serving as a politician in Stockholm. A new law that took effect in 1948 required every corporation to have a CEO, and Gustav Lake was appointed CEO.
The early board meeting minutes paint a picture of a company being formed and trying to find its way. They reveal a deep concern for Skövde and its residents, but also some drastic decisions. In 1947, all of the company’s apartment holdings were sold, and for a time, Skövdebostäder was a housing company without any apartments. This situation would not last forever; plans for Östermalm what would come to be known locally as Lakestan were in full swing.

Conflicts in the City
The city’s other developers were not pleased that a public housing company had been established in the city—especially one with ambitions to build on a large scale. This debate even reached the national press, which reported on “Sharp criticism of municipal housing company.” Skövdebostäder, led by Gustav Lake, did not let this deter them but continued toward their goal of providing ordinary people with decent housing. Östermalm Billingssluttningen shape, with apartments built to such a high standard that they still stand today.
In 1973, there was an energy crisis, and Skövdebostäder once again made headlines in the national press. To conserve energy, it was decided to shut off the hot water for several days a week. But this decision met with resistance, and the hot water had to be turned back on. Instead, the heat in the apartments was lowered to 16 degrees during certain hours of the day. Fortunately, the energy crisis came to an end, and life could return to normal.

Sonja Ljungkvist with her son
Ulf at the playground in Östermalm.
Photo: Private
Public Services Are Changing
As times changed, so did public housing. Many things are happening at the same time and influencing one another. The quality of the apartments is improving; the toilet is moving from the backyard into the apartment. Residents are getting electric stoves and refrigerators. There are green spaces and playgrounds between the buildings. People are becoming better off financially.
Despite all the efforts being made, overcrowding persists, and cities and populations are growing again. In 1965, the Riksdag passed a resolution to eliminate overcrowding through construction. Industrial-scale construction expanded, and the so-called “Million Program” took shape. As the housing shortage eased, the focus within the public housing sector shifted from new construction to property management. People began to talk about tenant influence. In the 1990s, government subsidies were reduced, and public housing and private real estate companies were placed on a more equal footing; in 2011, a new law was enacted for municipal public housing corporations, requiring them to combine social benefit with commercial viability.
Everything goes in cycles, and by the mid-2010s, there is once again a housing shortage—not the same level of hardship, but a significant degree of involuntary overcrowding. Public housing authorities once again have the opportunity to eliminate the housing shortage, and Skövdebostäder is doing its part with its many new housing projects.