There is a historically low level of sales and construction starts for new homes in Norway in the first quarter. Lars Jacob Hiim, CEO of Boligprodusentene, describes the situation as a crisis for both the industry and the country's housing supply. According to a press release from the Boligprodusentenes Forening, sales and construction starts for new homes have never been weaker in the first quarter since measurements began in 1999.
The statistics show that sales of new homes in March 2023 were 44% lower than in March 2022, while construction starts were 64% lower in the same period. Hiim points to interest rate increases, high construction costs, and economic uncertainty as reasons for the decline and proposes a series of measures to avoid a prolonged housing crisis. These include an increased framework for Husbanken's housing quality, additional tools for Husbanken, a collaboration between the state, municipality, Husbanken, and developers, as well as financial policies that dampen interest rate pressure and control inflation.
The structural supply shortage in the housing market will continue to put pressure on housing prices, and the number of available rental properties are expected to be a limited. In this situation, rent-to-own schemes will become a good solution and opportunity for our customers in Norway going forward.
Source: dn.no, Boligprodusentenes Forening
