Public housing in Sweden has traditionally been fundamental for Swedish municipalities in striving for the socially inclusive city. Changes in policy have, however, gradually changed its playing field. This article presents results of a research project, showing concerns for public housing’s endeavour for social inclusion. The author suggests that the universal approach that has been the signature for public housing in Sweden is diminishing in favour for an ambiguous approach of universal discourse and selective outcome. While public housing is simultaneously raising the thresholds, making it harder for the large groups to enter, residualisation of public housing appears as a result of an increased secondary housing market. This dual approach minimizes the financial risk at the same time as social responsibility is claimed. But New Public Housing seems to exist in a contradictory state between its claims of universalism and excluding people with low or irregular income.