This article analyses the political and ideological transformations underlying the gradual privatisation and deregulation of the mid-twentieth-century Keynesian model of housing provision in Sweden. We identify a series of three political and ideological shifts in housing policy and urban form since the 1930s: regulating Folkhem housing, deregulating Folkhem housing, and back to business in housing. We argue that even though the Folkhem parole of ‘housing for all’ differs extensively from the current situation where the market is ‘housing the privileged’, segregation trends have, from the Folkhem to the post-welfare period, been shaped by both state interventions and market forces. Second, we argue that there is a continuing trend through which newly constructed housing has metamorphosed from a basic human right for the working class into an expression of individual distinction and ‘style’ for the upper middle and middle classes. While privileged classes, more than ever before in modern Swedish housing history, have the possibility to choose new forms of housing, the most impoverished groups live in residual and often stigmatised peripheral housing areas. One main conclusion is that recent forms of housing for privileged groups signal a cultural and ideological shift towards new, more elitist conceptions of housing and privilege.