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For the third year, the Homeowners Cost Index is published, which shows the housing costs in the country’s municipalities.
The report shows the costs of owning and living in one’s home, and is based on the housing costs of an average Norwegian household in a 120-square-meter single-family home.
Homeowners Cost Index:
The following costs are included in the index:
- Property tax
- Municipal fees
- Energy costs
- Interest costs
- insurance
- Maintenance costs
Source: Owners
According to the owners, there was an increase in almost all cost items, with energy costs being the exception. The increase was larger for interest costs by 18 percent, which is mainly due to higher interest rates, but also higher debt, the association claims.
– We also see an increase in municipal fees and maintenance costs, says Morten Andeas Meyer, General Secretary of Homeowners, in a press release.
Reduce property taxes
– Proximity to Oslo is crucial
The report reveals that housing costs increased by eight percent from 2018 to 2019, and it was again Oslo that topped the list at the same time that the municipality has the largest percentage increase.
In the capital, the average is NOK 165,266 for a 120-square-meter single-family home, which corresponds to an increase of 12.71 percent over the previous year.
By comparison, the average Norwegian has to pay NOK 116,392.
In place behind is Bærum with an average housing cost of 150,229 crowns, corresponding to an increase of 9.36 from 2018 to 2019.
In general, there is a tendency for Oslo’s neighboring municipalities to rank high on the list, with Asker, Lørenskog, Asker and Lillestrøm in the top ten.
– It is the proximity to Oslo that is crucial. It drives up home prices, which in turn drives up interest costs, Meyer says.
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The five most expensive municipalities in Norway:
- Oslo: 165,266 crowns
- Bærum: 150 229 crowns
- Nesodden: 134,985 crowns
- Lørenskog: 132,968 crowns
- Frogn: 131 571 crowns
The five most affordable municipalities:
- Lavangen: 82,013 crowns
- Sørreisa: 82,713 crowns
- Hasvik: 84,275 crowns
- Karasjok: 84,287 crowns
- Bardu: 84,579 crowns
These are the costs in the other big Norwegian cities:
- Bergen: 122,548 crowns
- Tromsø: 122,013 crowns
- Trondheim: 120,910 crowns
- Stavanger: 114,604 crowns
- Kristiansand: 106,815 crowns
You can check the costs in the municipality in which you live, and in all other municipalities, on the owners website. You can find the service here.
Expect an increase
In the forecast by Samfunnsøkonomisk Analyze, which has prepared the report on behalf of homeowners, an increase in the housing costs of households is expected for the period 2020-2023, but at the same time a decrease in the index of housing costs of 12 percent in 2020.
This is due to lower interest costs, energy costs, and property taxes.
