Financialization of Housing in Norway

To what degree has the purpose and status of housing in Norway changed from fulfilling a basic need to an object of investment? Norway had and has one of the highest ownership- rates in the world, but some central urban areas have nonetheless seen a significant increase in buy-to-let motivated investment. The paper addresses three issues related to this phenomenon. Firstly, it seeks to document the trend by looking at data over ownership and rental sub markets such as buy-to-let and airbnb. In addition, we will undertake an inquiry into peoples’ motives to own versus renting with particular emphasis on the investment motive. Secondly it explores some of the drivers of change, such as post 2000 low interest rates, economic growth and how housing is taxed. Thirdly it discusses some consequences such as distribution among generations, urban development and the opportunity cost of financial resources flowing into existing assets instead of more productive investments.