Doesn't the housing shortage pre-date the low interest rates though? I understand it would certainly exacerbate it though. I near zero is most of the EU at the moment no?
Yes and no. Stockholm grows by a relatively large percentage per year, and would grow even more if people could find housing there, but almost nothing is built. Whatever housing is available is condos, not rentals, so the low interest rates work to increase prices because with no rentals there's no other choice than to buy.