Norway

Norway’s housing market in 2025 is marked by rising property prices and a strong preference for home ownership. About 79 percent of Norwegians own their homes, while roughly 17 to 21 percent rent; the capital Oslo features lower ownership rates and a higher share of renters compared to the national average. The median purchase price for an apartment across Norway is approximately 5,112 euros per square meter, while the median rent is about 29 euros per square meter monthly. Housing costs and rents have both climbed sharply, further reducing affordability especially for first-time buyers and young people.

Publicly owned housing plays a very limited role, accounting for roughly 4 percent of the housing stock, and social housing is highly needs-tested—available mainly to those facing acute difficulties such as financial hardship, disability, or family challenges. Public housing and social housing are not the same in Norway; public housing refers to municipally or state-owned dwellings, while social housing is allocated based on strict eligibility criteria and exists mostly as a small segment within the broader public sector. Unlike neighboring countries like Sweden and Denmark, Norway’s social housing is neither universal nor widely available, resulting in less support for low-income or vulnerable households.

Norway’s housing crisis in 2025 is characterized by sharply rising property prices, severe housing supply shortages, and rapidly increasing construction costs. Average home values have surged by more than 24 percent over five years and by 5.9 to 7.3 percent in just the past 12 months, with major cities such as Oslo, Bergen, and Stavanger seeing the fastest price increases. The national average home price stands at over 430,000 euros, with Oslo averaging more than 610,000 euros for a standard apartment. Construction of new dwellings has plummeted to historic lows: starts declined by about 50 percent in 2023 compared to previous years, and completions were down by 16.5 percent in early 2024. This supply crunch is most acute in urban centers where demand is highest.

High interest rates and mortgage rates close to 5.7 percent further worsen affordability, forcing about 14.5 percent of households to spend at least 15 percent of their income just on mortgage interest. The crisis hits first-time buyers, young people, low-income households, and families without significant financial backing the hardest. Renters, especially in urban areas, face rapidly rising rents and intense competition for available units. These housing burdens are contributing to increased social inequality and exclusivity in the housing market, making it very difficult for vulnerable groups to access stable housing.

The Norwegian government’s main recent targets for the housing sector are to increase both affordability and sustainability, while prioritizing energy efficiency and universal design. Authorities are working toward a future where all new housing is environmentally friendly, energy-efficient, and accessible to people with disabilities, referencing an official goal for “Norway to be universally designed by 2025.” To support affordability, the government lowered the down payment requirement for home purchases from 15% to 10% in January 2025, aiming to make homeownership more attainable, especially for first-time buyers. Strengthening construction of energy-efficient buildings is another policy focus; strict building standards promote zero-emission homes and incentivize sustainable solutions such as solar panels and heat pumps.

Recent concrete government actions and programs include:

• Adjusting lending regulations to lower entry barriers for buyers with limited capital.
• Supporting "shared ownership" models, where people can buy part of a home and rent the rest, with the opportunity to gradually increase their ownership.
• Sustaining the “Housing First” approach, especially for vulnerable groups, by prioritizing permanent and affordable housing before other social services.
• Providing grants and subsidized loans for the energy upgrading of dwellings, with incentives to renovate and retrofit existing housing stock for sustainability and accessibility.

Despite these initiatives, experts stress that more supply-side measures are required, as limited construction and high costs continue to impede broad access to affordable, sustainable housing in Norway.

Housing cooperatives play a notable role in Norway, especially in urban areas, but they are less prevalent than in some neighboring countries. The largest cooperative group is OBOS, which manages tens of thousands of units, mainly in Oslo and its surroundings. Nationally, cooperative housing is estimated to account for approximately 14 to 16 percent of the total housing stock, with considerably higher shares in cities like Oslo, where it forms a core part of the rental and ownership mix. The sector is experiencing slower growth, partly due to rising construction costs and decreased building activity, mirroring challenges in the wider housing market.

Recent trends show a decline in new cooperative development and changes in secondary market ownership, with institutions and companies holding stable or slightly decreasing shares. Sector dynamics are marked by ambition to modernize and retrofit older cooperative stock, emphasizing sustainability and energy efficiency.

Norwegian government support for cooperative housing mostly comes through general housing policies: programs that incentivize energy upgrades, grants for universal design, and regulation targeting affordability and ownership. There are occasional direct measures, such as lower loan-down payment requirements and support for shared ownership models. However, specific cooperative-focused programs remain limited, with cooperative housing benefitting primarily from broader housing sector regulations and incentives.