The ongoing debate on Swedish municipal housing’s universalist characteristics has focused on declining supply, stricter access criteria, and changing tenant demographics. This study addresses a research gap by examining how Swedish municipal housing queues, prioritizing apartment allocation by registration duration, influence tenant selection. Using a unique dataset from Bostaden, Umeå’s municipal housing company, linked to register data, the study investigates factors influencing housing queue accumulation and usage, with a focus on immigrant background. It further analyses how immigrant background affects the timing of exiting the housing queue to secure apartments. Furthermore, the study explores how the immigrant background of individuals obtaining queue-assigned apartments influences neighbourhood demographics. The findings highlight the substantial challenges faced by immigrants, particularly those from the Global South, in terms of housing queue accumulation, utilization, and neighbourhood attainment. These insights reveal how housing queues, as seniority-based rationing mechanisms, contribute to the perpetuation of housing and socio-spatial inequalities in Swedish cities.