Navigating Inflation and the Housing Market : Exploring Young Swedish Adults' Perceptions, Financial Decisions, and the Media's Influence

Problematization: Young adults face significant problems when trying to enter the housing market amidst rising inflation, fluctuating interest rates, and the media's portrayal of economic conditions. While inflation’s effect on the housing market is recognized, there is limited research exploring how young adults perceive the implications of monetary decision made by the central bank. Central to this is oversimplified assumptions and media narratives misinterpreting economic realities, obscuring the correct impact of inflationary policies. As existing literature has limited research on the issue of individual perception and understanding of monetary policy, further research is needed to explore how these factors impact economic outlook and housing market entry. Purpose: The thesis aims to explore how young adults perceive the implications of inflationary decision making by the central bank and how it impacts their entry into the housing market. Additionally, the study seeks to delve into how media and social discourse impact and shape their perceptions. Method: An exploratory qualitative multiple-case study approach was used. Data were collected through semi-structured interviews with young Swedish adults across the ages of 18-26. The data were analyzed using a systematic method and triangulated for credibility. Conclusion: The results emphasize that young adult’s express considerable scepticism towards the central bank and its policies, as it significantly impacts their ability to enter the housing market. They are highly influenced by media narratives and the media’s framing heightened stress and anxiety regarding these issues. High entry costs, economic uncertainty, and loan accessibility emerged as the main barriers for entry to the housing market. A distinct financial literacy gap was observed, highlighting the urgent need for improved financial literacy, better and more transparent communication from institutions, and policy changes to reduce the impact of the entry barriers.