**3. The housing situation and markets for multistorey construction (WMC) in Sweden**

The markets for residential constructions, houses as well as apartments in multistorey constructions in Sweden, are changing slowly and it does not meet captured in the word, *shortage*. The housing situation varies from one municipality to another, which in part can be explained by political ambitions and by corporate investments. In the metropolitan regions of Stockholm, Gothenburg, and Malmö, housing construction is expected to increase significantly over the coming years to meet the current housing shortage in the country [15] illustrated in **Figure 1**.

The needs for residential house construction in **Figure 1** are clear. According to this forecast, some 90,000 additional homes are needed annually between 2018 and 2024 [15, p. 20]. Looking more closely on what has been completed in terms of residential houses since the late 1930s (**Figure 2**) further supports the understanding of market development needs [16].

**Figure 2** shows the number of apartments and single-family houses since the 1940s in Sweden. The new residential construction has been below the needs of markets since the 1970s. The graph also indicates that since 2010 the rate of construction for multistorey houses (apartment homes) is increasing. In 2017, some 51,500 new homes were completed in Sweden, which is a much needed increase. This is explained by a population growth and continued movement of individuals to urban contexts, especially metropolitan areas, from rural areas. However, even with this increase in new homes, it does not cover the forecasted needs of 90,000 new (additional) homes on an annual basis [15].

#### **3.1 Traditions of using wood in construction**

A tradition to use wood in house construction in Sweden is well established. Of the approximately 10,000 new single houses that are built in Sweden on an annual basis, some 90% are built in wood [17]. The situation for multistorey construction

#### **Figure 1.**

*The relationship between completed housing construction and the forecasted need for housing up to the year 2025 [15].*

#### **Figure 2.**

*Number of completed apartments in multifamily houses and single-family houses from 1938 to 2017 in Sweden [16].*

is quite different. Due to fear of fire, a legislation has been limiting construction in wood (over two levels). However, since 1994, it is permitted to use wood as a bearing material in multistorey residential construction in Sweden. Development of new techniques, materials, and tests of the properties of wood in construction has proven that wood serves as a safe and esthetically pleasing material, in addition to the properties that benefit sustainable development.

The ban to use wood in multistorey construction has had consequences on the market in terms of a deprived skills and technological development [13]. Other construction materials, such as concrete and steel, have taken the lead in practices for multistorey construction. When the legislation was altered in 1994, the market did not respond, which is explained by a change of practices and skills in major stakeholder groups (construction workers, engineers, architects as well as in procurement stakeholders representing municipalities) [18].

**61**

*Communicating Added Value in Wooden Multistorey Construction*

Political efforts were made to support the reestablishment of wood practices in multistorey construction in Sweden. In 2002, the Ministry of Enterprise and Innovation presented a proposal to develop a strategy for increased wood construction in Sweden, "More wood in construction DS2004:1" [19]. It was based on the understanding of a need to meet needs of needs of homes located in urban areas, land use, and sustainable development objectives for construction. In spite of political efforts on national and local levels, the market development has remained very

In 2018, the Swedish Ministry of Industry presented a policy document "Focus on Wood Construction" [20], which clearly voices the understanding of needs for multistakeholder dialogues in order to promote a market development. It points to key stakeholders as forest-based industry corporations, municipalities, architects, and consumers as drivers of a change in construction practices. Representing the government, representatives of the Ministry describe perceived benefits in terms of creating new jobs, technological development, and increased housing production, with an understanding of these outcomes as part of sustain-

At a local level, Swedish municipalities address political objectives related to sustainable development and residential construction with different objectives. One of the municipalities that has worked with wood in multistorey construction in a

The town, Växsjö, is often referred to as a "wood construction town" with an ambition to be a center for wood construction expertise. It is located in the southern part of Sweden, surrounded by forests, which explains the well-developed industrial system that uses the forest resources. Municipal ambitions of sustainable development efforts as well as traditions may account for politically well-founded public procurement efforts for wooden multistorey constructions (WMCs). Their local strategies have supported WMC for a long time [21] with ambitious goals set for 50% of the new constructions of multistorey homes to be in wood by 2020. Municipal bold objects set in 2013 and efforts to follow up on progress have resulted in 44% new WMC already by 2015 [22]. The efforts continue to reach the 50%

Assuming that municipal politics and actions reflect consumer values and needs, this pilot study set out to investigate consumer perspectives of WMC. The interviewed residents of apartments in WMC houses were interviewed, and **Table 3** provides an overview of the results [9]. The 42 interviews in three residential areas are merged, as they did not show any major differences from one residential area to

Empirical results (**Table 3**) from the interviews indicate that a majority of the apartment residents are aware of that they live in a WMC apartment. The source of that information is less clear, which might be explained by some time having passed

The last theme for the interview, the factors that were of major importance for purchasing an apartment or not, points to the importance of the location of the apartment. Size, price, and atmosphere also play important roles. The last listed fac-

since the purchase was made or not being the first owners of the apartment. Channels for information about climate properties of wood construction is preferred in word of mouth dialogs, web pages, printed matters, and media infor-

tor, environmental properties, offers some food for thought.

*DOI: http://dx.doi.org/10.5772/intechopen.83498*

moderate.

able development.

target by 2020 [23].

mation in general.

another.

very structured way is Växjö.

**3.2 Consumer perspectives in Växjö**

*Timber Buildings and Sustainability*

**60**

**Figure 1.**

*2025 [15].*

**Figure 2.**

*Sweden [16].*

is quite different. Due to fear of fire, a legislation has been limiting construction in wood (over two levels). However, since 1994, it is permitted to use wood as a bearing material in multistorey residential construction in Sweden. Development of new techniques, materials, and tests of the properties of wood in construction has proven that wood serves as a safe and esthetically pleasing material, in addition to

*Number of completed apartments in multifamily houses and single-family houses from 1938 to 2017 in* 

*The relationship between completed housing construction and the forecasted need for housing up to the year* 

The ban to use wood in multistorey construction has had consequences on the market in terms of a deprived skills and technological development [13]. Other construction materials, such as concrete and steel, have taken the lead in practices for multistorey construction. When the legislation was altered in 1994, the market did not respond, which is explained by a change of practices and skills in major stakeholder groups (construction workers, engineers, architects as well as in

the properties that benefit sustainable development.

procurement stakeholders representing municipalities) [18].

Political efforts were made to support the reestablishment of wood practices in multistorey construction in Sweden. In 2002, the Ministry of Enterprise and Innovation presented a proposal to develop a strategy for increased wood construction in Sweden, "More wood in construction DS2004:1" [19]. It was based on the understanding of a need to meet needs of needs of homes located in urban areas, land use, and sustainable development objectives for construction. In spite of political efforts on national and local levels, the market development has remained very moderate.

In 2018, the Swedish Ministry of Industry presented a policy document "Focus on Wood Construction" [20], which clearly voices the understanding of needs for multistakeholder dialogues in order to promote a market development. It points to key stakeholders as forest-based industry corporations, municipalities, architects, and consumers as drivers of a change in construction practices. Representing the government, representatives of the Ministry describe perceived benefits in terms of creating new jobs, technological development, and increased housing production, with an understanding of these outcomes as part of sustainable development.

At a local level, Swedish municipalities address political objectives related to sustainable development and residential construction with different objectives. One of the municipalities that has worked with wood in multistorey construction in a very structured way is Växjö.

#### **3.2 Consumer perspectives in Växjö**

The town, Växsjö, is often referred to as a "wood construction town" with an ambition to be a center for wood construction expertise. It is located in the southern part of Sweden, surrounded by forests, which explains the well-developed industrial system that uses the forest resources. Municipal ambitions of sustainable development efforts as well as traditions may account for politically well-founded public procurement efforts for wooden multistorey constructions (WMCs). Their local strategies have supported WMC for a long time [21] with ambitious goals set for 50% of the new constructions of multistorey homes to be in wood by 2020. Municipal bold objects set in 2013 and efforts to follow up on progress have resulted in 44% new WMC already by 2015 [22]. The efforts continue to reach the 50% target by 2020 [23].

Assuming that municipal politics and actions reflect consumer values and needs, this pilot study set out to investigate consumer perspectives of WMC. The interviewed residents of apartments in WMC houses were interviewed, and **Table 3** provides an overview of the results [9]. The 42 interviews in three residential areas are merged, as they did not show any major differences from one residential area to another.

Empirical results (**Table 3**) from the interviews indicate that a majority of the apartment residents are aware of that they live in a WMC apartment. The source of that information is less clear, which might be explained by some time having passed since the purchase was made or not being the first owners of the apartment.

Channels for information about climate properties of wood construction is preferred in word of mouth dialogs, web pages, printed matters, and media information in general.

The last theme for the interview, the factors that were of major importance for purchasing an apartment or not, points to the importance of the location of the apartment. Size, price, and atmosphere also play important roles. The last listed factor, environmental properties, offers some food for thought.


#### **Table 3.**

*Results from interview with 42 residents in apartments in wooden multistorey constructions (WMCs) in Växjö (February–March, 2018) [9].*

### **4. Communication and market development**

The development of a market can be seen from many perspectives. Starting with a product-dominant logic, focusing on the product (an apartment in a WMC house), we continue the discussion with a more service-dominant logic [21] perspective focusing on societal and consumer needs.

#### **4.1 A product-dominant perspective—consumer behavior**

This project set out with an understanding of the importance of commutation as means to promote consumer behavior. Previous research on consumer awareness in purchasing apartments in WMC [24–29] points to shortcomings in communication regarding climate effects.

Our empirical study shows that efforts to communicate have been made, which is to be expected in a "wood town" like Växjö, but the consumers' recollection of the information from the purchasing situation was not very clear. This may be explained by some time having passed since the purchasing decision was made, information materials that were not tailored to the needs of the consumers, the interviewee not being the person that made the purchasing decision or information that was provided in a communication channel that was not suitable. The level of awareness of benefits related to wood as a construction material in WMC appears to be limited. Consumers' limited insight to technical production-related benefits is expected, but the awareness of physical properties in use and environmental benefits with WMC also appears to be moderate among the interviewees. There is, clearly, room for improvements if consumer awareness is seen as important.

The last question in the empirical study, about factors that determine a purchasing decision of an apartment in a WMC house, points to needs to rethink our

**63**

*Communicating Added Value in Wooden Multistorey Construction*

understanding of what influences market development. The first thing we need to problematize is that of the difference between *preference* and actual *purchasing decision*. Housing preferences are influenced by a number of factors [14], for example, household size, transparency of the housing market, availability of alternative housing options, and lifestyle-related factors. All of the above, in addition to personal budget constraints, financial institute conditions for taking loans and governmental policy systems that may or may not offer tax deductions and subsidies, on the other hand, influence purchasing decisions. It seems that studies of conditions of consumer awareness of environmental aspects of WMC require a contextual understanding of institutional conditions for making decisions.

Worth noticing is that the consumers did not mention health aspects influencing

Given the current shortage of housing alternatives in Sweden [15], there might

As pointed out by Jansen et al. [14], availability of housing alternatives plays a key role. If there are no WMC apartment available in a particular geographical area, of a requested size and price range, that will limit the consumer's possible choice of a WMC apartment. The logic is the same as that of buying food in a food store. It is the management's portfolio decisions in a food store that will set the limits to what

In this case, goals for expanding markets for WMC were set on a national level as a way to meet forecasted housing demands, preferences, and work toward sustainability objectives in an industry that uses a substantial amount of resources. Some municipalities, like Växjö, picked up on these national objectives and made it their

their purchasing decision in our empirical study, which is somewhat surprising. After all, the indoor environment is important for an individual's life, especially in temperate climate such as that of Sweden. Burnard and Kutnar [28] point to health

aspects in terms of wood as a construction material that may relax stress.

**4.2 A service-dominant perspective—societal and consumer needs**

local agenda, but the vast majority of municipalities in Sweden have not.

A service-dominant logic starts with consumer needs and looks for ways in which these needs can be met. With an understanding of consumers' limited capacity to influence the material choice in house construction, it seems that other economic and macrolevel incentives are needed. Standards and sustainability ecolabels would be one way to go [30], but Hurmenkoski et al. [27] call for regulatory frameworks to support the WMC market developments. Although the environmental benefits in using wood for house constructions are associated with societal benefits [31], it cannot be assumed that consumers fully comprehend the benefits or are willing to pay extra, which points to needs for policy instruments to be used such as taxes and subsidies to promote market development in a direction toward

Looking into the future, Høibø et al. [32] suggest that future generations are more environmentally aware when it comes to paying attention to house construction materials. Their findings support other researchers' views [8, 13, 14] that younger generations, the future inhabitants of apartments in WMC houses, future generation of business leaders, and politicians will be more aware of SDGs in their private life as well as in their professional conduct. Given the lasting character of a house that may last for hundreds of years, it is important to include educated

guesses of where the future is taking us in strategic choices.

not be a need to communicate WMC benefits. Consumers in need of an apartment will buy it, independent of construction materials used in the house [9]. Furthermore, the importance of location points to that this will be key if consumers

*DOI: http://dx.doi.org/10.5772/intechopen.83498*

are given alternatives.

sustainable development.

products that I may purchase in that food store.

#### *Communicating Added Value in Wooden Multistorey Construction DOI: http://dx.doi.org/10.5772/intechopen.83498*

*Timber Buildings and Sustainability*

Awareness of living in a WMC apartment Source of information about WMC apartment

Information about climate-related properties

Factors that influenced the decision to buy the

Channel for information (about wood properties and climate properties)

of a wooden house

apartment

*(February–March, 2018) [9].*

**Table 3.**

**4. Communication and market development**

perspective focusing on societal and consumer needs.

regarding climate effects.

**4.1 A product-dominant perspective—consumer behavior**

The development of a market can be seen from many perspectives. Starting with a product-dominant logic, focusing on the product (an apartment in a WMC house), we continue the discussion with a more service-dominant logic [21]

*Results from interview with 42 residents in apartments in wooden multistorey constructions (WMCs) in Växjö* 

**Thematic questions Results from interviews (in total 42)**

about WMC

6 do not know

communication

Price (13) Atmosphere (13)

Size of apartment (16)

mouth)

34 knew they lived in a WMC apartment 6 thought it was a concrete house

3 did not know about the construction material 12 persons are aware of having been given information

Oral information from sales agent and printed information from the house association

14 are aware of having been given information

12 would prefer to get information on a web page

7 reply that TV and radio is a good channel for

21 prefer to get information in personal dialogs (word of

22 do not recall any information

11 request printed information and

The location of the apartment (34)

Environmental properties (6)

This project set out with an understanding of the importance of commutation as means to promote consumer behavior. Previous research on consumer awareness in purchasing apartments in WMC [24–29] points to shortcomings in communication

Our empirical study shows that efforts to communicate have been made, which is to be expected in a "wood town" like Växjö, but the consumers' recollection of the information from the purchasing situation was not very clear. This may be explained by some time having passed since the purchasing decision was made, information materials that were not tailored to the needs of the consumers, the interviewee not being the person that made the purchasing decision or information that was provided in a communication channel that was not suitable. The level of awareness of benefits related to wood as a construction material in WMC appears to be limited. Consumers' limited insight to technical production-related benefits is expected, but the awareness of physical properties in use and environmental benefits with WMC also appears to be moderate among the interviewees. There is, clearly, room for improvements if consumer awareness is seen as important. The last question in the empirical study, about factors that determine a purchasing decision of an apartment in a WMC house, points to needs to rethink our

**62**

understanding of what influences market development. The first thing we need to problematize is that of the difference between *preference* and actual *purchasing decision*. Housing preferences are influenced by a number of factors [14], for example, household size, transparency of the housing market, availability of alternative housing options, and lifestyle-related factors. All of the above, in addition to personal budget constraints, financial institute conditions for taking loans and governmental policy systems that may or may not offer tax deductions and subsidies, on the other hand, influence purchasing decisions. It seems that studies of conditions of consumer awareness of environmental aspects of WMC require a contextual understanding of institutional conditions for making decisions.

Worth noticing is that the consumers did not mention health aspects influencing their purchasing decision in our empirical study, which is somewhat surprising. After all, the indoor environment is important for an individual's life, especially in temperate climate such as that of Sweden. Burnard and Kutnar [28] point to health aspects in terms of wood as a construction material that may relax stress.

Given the current shortage of housing alternatives in Sweden [15], there might not be a need to communicate WMC benefits. Consumers in need of an apartment will buy it, independent of construction materials used in the house [9]. Furthermore, the importance of location points to that this will be key if consumers are given alternatives.

As pointed out by Jansen et al. [14], availability of housing alternatives plays a key role. If there are no WMC apartment available in a particular geographical area, of a requested size and price range, that will limit the consumer's possible choice of a WMC apartment. The logic is the same as that of buying food in a food store. It is the management's portfolio decisions in a food store that will set the limits to what products that I may purchase in that food store.

#### **4.2 A service-dominant perspective—societal and consumer needs**

In this case, goals for expanding markets for WMC were set on a national level as a way to meet forecasted housing demands, preferences, and work toward sustainability objectives in an industry that uses a substantial amount of resources. Some municipalities, like Växjö, picked up on these national objectives and made it their local agenda, but the vast majority of municipalities in Sweden have not.

A service-dominant logic starts with consumer needs and looks for ways in which these needs can be met. With an understanding of consumers' limited capacity to influence the material choice in house construction, it seems that other economic and macrolevel incentives are needed. Standards and sustainability ecolabels would be one way to go [30], but Hurmenkoski et al. [27] call for regulatory frameworks to support the WMC market developments. Although the environmental benefits in using wood for house constructions are associated with societal benefits [31], it cannot be assumed that consumers fully comprehend the benefits or are willing to pay extra, which points to needs for policy instruments to be used such as taxes and subsidies to promote market development in a direction toward sustainable development.

Looking into the future, Høibø et al. [32] suggest that future generations are more environmentally aware when it comes to paying attention to house construction materials. Their findings support other researchers' views [8, 13, 14] that younger generations, the future inhabitants of apartments in WMC houses, future generation of business leaders, and politicians will be more aware of SDGs in their private life as well as in their professional conduct. Given the lasting character of a house that may last for hundreds of years, it is important to include educated guesses of where the future is taking us in strategic choices.
