Housing construction in Oslo down 60 percent

OBOS Housing project. Oslo UlvenOBOS Housing project. Illustration: LPO Arkitekter/BLÅR

Housing construction in Oslo has been reduced by 60 per cent in one year and this figure is too low when measured against the population growth in the capital.

Recent statistics on housing construction in Oslo show that there were 900 new homes in mid-October, writes Finansavisen. At the same time last year, the figure was 3,500 new homes.  Figures from Econ Nye Boliger show this is a reduction of over 60 per cent,

“Too little is being initiated in housing in relation to population growth. That could cause price pressure in the capital in the long run,” said Chief Economist Andreas Benedictow with the Social Analysis, which released the figures on Wednesday.

To put the figures in context, Benedictow added that 900 homes are more than just after the 2010 financial crisis, but fewer than in 2013 and this is considered low. He predicted a slight rise in prices in the Norwegian housing market in the time ahead but a marked increase in Oslo.

The population of Oslo will increase by close to 8,000 people a year over the next three years, according to Social Economic Analysis’ forecasts. In their calculations, they assume that two people live in each household and so, about 4,000 new homes should be built annually.

However, the estimates show that only about 8,500 new homes will be built over the next three years.

© NTB Scanpix / #Norway Today

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