Housing construction works well most places

«Construction of new housing is rapidly stepped up when populations grow and home prices rise. This is positive, but the large cities are facing challenges,» says Minister Liv Signe Navarsete. 

Navarsete refers to the report The price response of housing construction from the Norwegian institute for Urban and Regional Research (NIBR). NIBR has considered how house prices and population growth have affected construction of new housing over the last  10 years.

In most areas, construction has adapted to demand, but construction rates in the four largest cities are too low to maintain housing coverage.

NIBR also points out factors that have impeded housing construction in the large cities. Some of the explanation lies in low turnover and land zoning, while municipal case processing also takes a long time. Other hindrances are at the state level, such as quality requirements for housing.

Construction costs have also risen in recent years, a fact NIBR explains is due to increased labour costs and reduced productivity in the construction industry.
«It’s useful to gather knowledge about factors that slow housing construction in pressure areas. I expect municipalities to formulate strategies for housing construction and that they make enough zoned areas available. I will consider whether we can simplify the construction regulations further, without compromising the quality of the buildings,» says Navarsete.

• The price response of housing construction. Too many concerns or too little facilitation? / Boligbyggingens prisrespons. For mange hensyn eller for lite tilrettelegging? 

The Ministry of Local Government and Regional Development’s media line: +47 22 24 25 00.