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High Housing Prices Widen Norwegians' Housing Quality Gap

High Housing Prices Widen Norwegians' Housing Quality Gap

BY Realty Plus
Published - Monday, 24 Jul, 2023
High Housing Prices Widen Norwegians' Housing Quality Gap

The Statistics Norway report indicates that the majority of Norwegians have good housing conditions. It also shows that many groups have improved their situation over time,” housing researcher Jardar Sørvoll.He adds that on the other hand, the report also illustrates that the housing sector is one of the areas where economic inequality in Norway manifests itself.

Sørvoll points out that the government has announced a new housing policy in 2024. He hopes that the increasing inequalities in the housing sector will be addressed. Among people with limited education and low income, there are significantly fewer in Norway who own their own home, as shown by the Statistics Norway report.

The gap between those who are well off in the housing market and those struggling to find a satisfactory home has increased in recent years. This has happened in line with the continuous rise in housing prices.

Among those who are struggling in the housing market, there are also more people living in cramped conditions and experiencing issues like dampness and noise. This negatively affects their well-being and quality of life.

The average household in Norway currently has around 70 square metres of living space per person. Those living in crowded conditions have an average of around 30 square metres per person. Those living in very spacious conditions have nearly 110 square metres per person. 

Unlike neighbouring countries such as Sweden and Denmark, Norway has not developed a large public rental sector. Consequently, almost 80 per cent of all individuals in Norway live in a home owned by someone in their household. In comparison, the homeownership rate in Denmark is 60 per cent, and in Germany, it is only 50 per cent.

Tax rules can encourage different ways of living. In Norway and Germany, the taxation of property is completely different. The Statistics Norway report shows a remarkably stable trend in how most Norwegians have lived over the past 40 years.

Among Norwegians aged 30 to 66 years, the proportion of homeowners is between 80 and 90 per cent. However, the homeownership rate varies significantly among different groups. It is significantly higher for couples living together than for individuals living alone and single parents.

Over 90 per cent of all couples in Norway own their own home. Only 58 per cent of individuals living alone and 68 per cent of single parents are homeowners.

The largest increase in homeownership has been among the oldest age group. In 1987, only around 50 per cent of all individuals over the age of 80 lived in their own homes. Now, the 

However, Statistics Norway finds that an increasing number of Norwegians have moved into apartments. Over the past 40 years, the proportion of Norwegians living in apartments has increased from around 18 per cent to approximately 35 per cent. 

Consequently, the proportion living in detached houses is decreasing. The proportion of the population living in terraced houses and multifamily residential /multi-apartment buildings has remained stable. Currently, 36 per cent of the Norwegian population lives in ‘very spacious’ conditions. This is an increase of 7 percentage points since 2003.

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