Making Norway’s housing more affordable and sustainable
Norway, like a number of other countries, saw steep growth in house prices during
the pandemic. This added to past years of strong price increases and has brought renewed
concern for housing affordability. Tax advantages to buying homes inflate house prices,
contribute to wealth inequality and divert resources from more productive investments.
An underdeveloped rental market is an additional consequence of Norway’s pro-homeownership
policies. Beyond tax reform and targeted support for low-income households, including
renters, lasting improvements in affordability will require measures to enhance the
responsiveness of residential construction to increased demand. However, creating
room for new housing supply can involve difficult trade‑offs with environmental and
other policy objectives.
Published on April 19, 2022
In series:OECD Economics Department Working Papersview more titles