Explosion in housing costs: Homeowners can go for a million bucks

hotel BRISTOL (Nettavisen): Property Norway and Finance Norway held their annual housing conference on Tuesday. One of the lectures at the conference was Homeowners’ overview of what it costs to live in a detached house of 120 square meters and an apartment in the big cities of 70 square meters. These are typical household sizes calculated by Statistics Norway.

And the development from 2021 has definitely gone the wrong way, not least because of the higher interest expenses. From 2021 to 2022, housing costs for a basic detached house of 120 square meters have risen on average by NOK 23,000 to NOK 153,000. This corresponds to an increase of 18 per cent, almost NOK 2,000 a month.

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— We talked before this lecture about whether we could write that there had been an “explosion in housing costs”. The answer is that we can, was the gloomy introduction from consumer and communications manager Carsten Pihl in Huseierne to the gathering.

You can check the typical housing costs in your municipality below by dragging the cursor over the map. And yes, there is a typical average municipality in Norway: Lillehammer. Fears for the households

But it will get worse. If the forecast is for the Homeowners, housing costs will increase by a further 16 per cent in 2023 to an average of NOK 178,000 for the typical detached house. General secretary Morten Meyer in Huseierne says on the website that the increases are very high.

— The households’ finances are under severe pressure due to increased rent, electricity prices, increased municipal taxes, maintenance and general price increases. We fear for the households’ finances in the months and years to come, says Meyer.

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The total housing costs include municipal taxes, energy costs, interest costs, insurance maintenance costs, as well as property tax for the roughly 250 municipalities that have it. The housing cost index is created by Community Economic Analysis on behalf of the Homeowners.

Below we have reproduced the ten most expensive municipalities with a high from the Homeowners/Society’s economic evaluate in Norway to live in. Oslo reigns at the top with NOK 215,000 in typical housing costs for a detached house of 120 square metres. For an apartment in the capital of 70 square metres, we are talking about NOK 175,000.

Housing costs are the worst

— The Norwegian housing model, where most people get the opportunity to own their own home, contributes to smaller differences and a better distribution of wealth. The Norwegian housing model will fail if the drastic increase in the costs of owning and taking care of one’s own home continues, warns Meyer. .

— Are you afraid that people will have to go “from the farm to the ground”, because they cannot afford the increased housing costs?

— Over time, we will the. We have said for a few years that we don’t fear housing prices the most, housing costs are measured., he replies.

There are several possible bangs in store, which could become a real shop. Pihl told those present that work is being done on a European building technical document for which homes must be upgraded in terms of energy. Dwellings in energy class E and F will probably go up to energy class D.

— It can mean 1 million for a normal detached house. I am particularly concerned about the housing on the outskirts, where an ordinary home owner may have to take everything himself. In a condominium and housing association, there are several people to distribute the costs to, says Pihl.

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Higher water charge

It is most expensive to live in Oslo, and here the fees go up. Oslo municipality has notified an additional water charge as a result of the shop overruns for new water supply. The water and sewage tax can increase by NOK 3,500 over the course of four years for an average household.

— We look at the figures from the municipality and see that they are constantly increasing. We have not yet seen the final bill, guys, I am much more worried that Oslo has a lot of pipes in the ground that are old, comments Pihl.

In addition to higher municipal taxes, home owners struggle with higher occupants and the unpredictable electricity costs here in southern Norway. Paint it has also become more expensive to refurbish and keep the home the same.

— The interest rate is the main challenge for the average municipality, it is here expenses go up. Then expenses have increased in maintenance, the prices of building materials have risen a lot, says Pihl.

Store, shop costs

The heartbreak, however, is municipal taxes.

— There are concerns going forward that some things will give shop, shop costs. There will be shop maintenance costs for the municipalities within water and drainage and pipes that must be replaced,

— The municipal fees go under the radar through the budgets. Nobody really cares, and that’s the main problem.

— So what is the appeal now to the politicians?

— The politicians must now accept that it is expensive. Every penny counts. They must look at the various parts and ensure that there is efficiency in municipal administration. It must be simple and easy to live in, and then the municipalities must reduce the fees.


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