Reduces forecasts regarding housing shortage
Decreased immigration results in that the need for housing being lower than expected, according to the Forecast Center. The number is reduced by 5,000 homes a year.
Previously, the home analysts in the Forecast Center believed that Norway needed 37,000 additional homes every year. Now they believe that Norway only needs 32,000. If so, suddenly enough housing is being built, writes NRK.
– We have reduced the housing requirement by 5,000 homes due to decreased immigration, says macro economist in the Forecast Center, Nejra Macic.
Chief economist in Handelsbanken, Kari Due, believes the housing market will cool down next year.
– Population growth has been stalled out. The upturn we saw in the demand for housing last year was not driven by housing needs, but rather due to increased interest in entering the housing market. At the same time, we received an additional cut in the interest rate and brighter prospects for the Norwegian economy.
© NTB Scanpix / Norway Today