– It was quite challenging to find a place to live in Oslo. It was difficult to get answers from various landlords, and it was difficult to get viewings, says Nora Thormodsen. She and her friends Sala Hording, Selma Snildal, Sanna Ravnsborg and Anette Gyrre will soon finish their second year of professional studies in psychology at the University of Oslo. But being a student in the capital costs money. Selma Snildal (left), Sanna Ravnsborg and Anette Gyrre study psychology at the University of Oslo. Photo: Benjamin Danielsen / news Thormodsen says that she pays NOK 8,500 in rent a month. In addition, there are costs for electricity and hot water. Now a recent report from the Norwegian Estate Agents’ Association and Ambita shows that the share of secondary homes in the first quarter of this year is a record low. This means that there are fewer homes for rent in the market. – If anyone thought it was a difficult rental market last year when the students came to the cities, I think I can promise that it will be even more difficult this year, says managing director Carl O. Geving of the Norwegian Association of Estate Agents. Increased rental prices Nationally, the proportion of secondary homes in the market has fallen from a peak of 15.4 per cent in the third quarter of 2019 to 14.5 per cent in the first quarter of this year. This corresponds to a decrease of 9,000 homes. The decline has been particularly evident in Oslo. Geving believes that it has become too expensive to own a second home for many and points out, among other things, that second homes will receive full wealth taxation from this year. In addition, interest rates have increased. – If you have a loan on the secondary home, it will simply be too expensive to service the home. There is a limit to how much you can charge a tenant, he says. A market with fewer rental properties will have consequences. – It’s about supply and demand. When many people are looking for the same good, prices are pushed up. There is reason to fear that rental prices will rise uncomfortably much in the coming months, Geving continues. – If anyone thought it was a difficult rental market last year when the students came to the cities, I think I can promise that it will be even more difficult this year, says managing director Carl O. Geving of the Norwegian Association of Estate Agents. The interest rate will be raised On Thursday, it is expected that Norges Bank will raise the key interest rate. This will cause the mortgage interest rate to rise. Handelsbanken expects the mortgage interest rate to remain around 5.5 per cent. – When the mortgage is expensive, one would rather invest in things other than housing. The cost of having a secondary home on which to pay off a loan becomes high, and then rental prices rise, says macroeconomist Sara Midtgaard at Handelsbanken. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. Higher interest rates mean increased expenses if you have a mortgage 2021 2022 2023 2024 2025 2026 Forecast Norges bank She advises students to start their housing hunt early. – If you are out late and don’t have enough time, it can be difficult and expensive to find a place to live. It can be a good idea to apply for student accommodation, because they are often a bit cheaper, says Midtgaard. More difficult to be a student Psychology student Nora Thormodsen believes that increased rental prices will make it more difficult to be a student in the capital. – You may have to set aside even more time for work, and then there will be less time for studies. It will have some ripple effects that are not so positive, she says. In addition, she believes that it may lead to fewer people wanting to study in Oslo and instead applying to Trondheim or Bergen, where it is easier to get hold of housing. Want more student housing City council for urban development in Oslo municipality, Arild Hermstad (MDG), shares the concern that it has become expensive to rent housing in Oslo. – The really large part of the rental market is made up of students. Oslo has a very low proportion of student housing, says Hermstad. He believes one of the most important solutions is to get more student accommodation in place. – It doesn’t happen overnight. But in Oslo we process such applications quickly and have a good dialogue with the student association about finding new plots. It is important that Oslo becomes a good city to study in, he continues. – So you think the situation might improve in the future? – Here, there are many long-term measures that need to be taken. We have called for better arrangements for students and increased study funding. That should be done in the times we are in, where those with the lowest incomes have been hit the hardest by increased prices, he replies.
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Fewer secondary homes in Norway – news Norway – Overview of news from different parts of the country
