In this article, we investigate local level reactions to the top-down state steering for the housing of refugees in Sweden. We especially reflect on events after the increased refugee reception in Sweden in 2015 and the introduction of a Settlement Act in 2016 which made it mandatory for municipalities to receive a specific number of refugees and organise accommodation. This has resulted in a wide array of housing situations for refugees concerning standard, costs and temporary solutions. A multi-level governance framework from on central government steering perspective is applied. We argue that the modified legislation can be understood as a change in governance throughout the years — from persuasion to economic incentives and, finally, to coercive methods. Sweden is a country that has distinguished itself as one refraining from particularity and continuing to work towards equality between newcomers and citizens. In relation to recent legal and political developments, we identify a change — a paradoxical change, as governance for the more-equal reception of refugees in Sweden seems to lead to increased inequalities for refugees on the local level. © 2021, The Author(s).