Norway

Norway is experiencing a deepening housing crisis marked by rising prices, limited supply, and growing inequality. The crisis is most acute in urban centres such as Oslo and Viken, where many residents spend over 30% of their income on housing. This high housing cost overburden is an established sign of declining affordability, particularly for groups like students, young adults, immigrants, and low-income renters. The situation is aggravated by a sharp decline in new housing construction, with dwelling starts and completions falling steeply in 2024 and 2025, resulting in a supply shortage even as demand remains strong. High construction costs and labor shortages, alongside stricter energy-efficiency standards, have pushed new-build prices even higher. While Norway enjoys high home ownership rates nationally, only the most affluent or those with family support can afford to buy in desirable locations. In Oslo, ownership rates are significantly lower, and private renting is increasingly unaffordable. Those most affected by the crisis include young people, immigrants, students, and households without access to family wealth or dual incomes. The small and highly targeted public housing sector leaves many low-income and vulnerable residents with few options, increasing both inequality and barriers to social mobility. Despite Norway’s general wealth and social safety nets, the housing crisis continues to impact life chances and deepen social divides across the country.

Norway’s national government is prioritizing both affordable and sustainable housing through recent reforms and targeted programs. One major initiative is the national strategy for social housing, which focuses on preventing housing exclusion and supporting those unable to secure or maintain suitable accommodation on their own. The government has also strongly promoted “shared homeownership” models to help young and first-time buyers enter the market; this allows individuals to purchase as little as 50% of a property and acquire the remainder over time, improving access for those without family wealth. Recent regulatory changes further aim to expand access to housing. As of January 2025, the required down payment for mortgage loans has been reduced from 15% to 10%, lowering the financial barrier to homeownership. This aligns with broader government efforts to foster a more inclusive housing market. On the sustainability side, Norway has achieved a 75% reduction in CO₂ emissions from the building sector since 1970 and continues to promote energy retrofitting and sustainable construction. However, experts emphasize that affordable housing policies must be integrated with green initiatives to ensure that sustainability benefits are accessible to all, not just wealthier households. The government has also partnered with industry stakeholders and set targets—such as proposals for 130,000 new homes by 2030—to address supply shortages and rising demand. Key actions include simplifying planning and building regulations, boosting housing construction, and prioritizing permanent housing solutions for vulnerable groups through “Housing First” approaches. (In Norwegian: Myndighetene fremmer deleieboliger, lavere egenkapitalkrav, nasjonal strategi for boligpolitikk og bærekraftige bygg som sentrale tiltak for å øke tilgang på rimelige og bærekraftige boliger, med mål om blant annet 130 000 nye boliger innen 2030 og betydelige CO₂-kutt i bygningssektoren.)

Housing cooperatives hold a significant position within Norway’s housing sector, especially in urban areas. The cooperative model, known locally as "borettslag," allows residents to collectively own and manage their buildings. Nationally, cooperative housing accounts for approximately 15% of all housing units, making it the second-largest co-op sector after agriculture. Most cooperative housing is concentrated in major cities such as Oslo, where they play an especially notable role in providing ownership opportunities and stable housing costs. Recent trends show increased focus on cooperative housing as a means of enhancing affordability and social cohesion. Supply-demand imbalances in the broader housing market, combined with high prices, have renewed interest in such models. However, strict regulations and limited public funding have constrained expansion. There is also growing discussion about the cooperative sector's potential contribution to sustainable and socially mixed neighborhoods. The Norwegian government supports cooperative housing primarily by sustaining the legal framework for borettslag and offering favorable lending conditions through public institutions. Policy measures include backing loan guarantees and maintaining accommodative rules for shared ownership and democratic management. However, the state’s direct financial promotion of cooperative housing remains modest, with current housing policy focusing more broadly on supply, affordability, and sustainability through other initiatives.

Norway’s housing market remains robust, with significant price increases in 2024 and into 2025. As of mid-2025, the national average home price is approximately NOK 5,112,498, or around 436,000 euros, with prices rising most rapidly in Oslo, Bergen, and Stavanger. The home ownership rate is about 78.8%, leaving just over 21% of households renting. Oslo is an outlier, where only 42.4% own their home and about 26% rent. Median rents for a two-bedroom dwelling nationwide are about NOK 10,620 per month—roughly 900 euros. Median rental prices per sqm average about 18.50 euros, while the purchase price per sqm for an apartment is approximately 6,500 euros, though these figures are higher in central Oslo. Publicly owned housing comprises only about 4% of the total housing stock and around 15% of the rental market, making Norway’s social and public housing sectors among the smallest in the Nordics. Access is tightly needs-tested and reserved for the most vulnerable, especially in urban areas. Public housing is not synonymous with social housing: public housing may be municipally managed and subsidized but is often allocated based on strict criteria, while social housing more specifically targets the lowest-income or otherwise disadvantaged groups. The limited size and targeted nature of social rental housing in Norway present ongoing challenges for housing accessibility for low-income households.