The purpose of this thesis is to analyze the long term impact of monetary policy on the real housing prices in Stockholm between 1994 and 2022. Furthermore, to examine the research question, a model constructed by Sutton et al (2017) was used. The dependent variable is the real housing price index of Stockholm and the independent variables are unemployment rate, real GDP and 3-months interest rate. In order to examine how the real housing prices in Stockholm respond to monetary factors the econometric model used will be multiple linear  regression. Thus we have attempted to forecast how the dependent variable, the real housin gprices, react to interest rate, unemployment and real GDP. After implementing our econometric model with the aid of the model used by Sutton et al (2017), we soon realize that short-term interest rates play a pretty crucial role in determining house prices. This comes to show the significance of the monetary policy channel of bank lending in house price alteration. We also found significant inertia in house prices and revealed that changes in interest rates as well as other indicators influence house prices progressively rather than immediately. This implies that modest policy rate cuts are unlikely to boost rapid increases inhouse prices in Stockholm. In order to examine cointegration the Engle Granger test will be the econometric method used. The cointegration analysis comes to show the long-run impact of monetary policy on the real housing prices in Stockholm is present. Meaning that the results show that there is indeed a relationship between monetary policy factors that are mentioned above and real housing prices of Stockholm.