Rent prices in Norway in steep rise during second quarter
Rental prices in Norway's four largest cities rose in the second quarter of this year, with prices up 4.2 percent overall from last year, figures from Real Estate Norway show.
A sharp rise in the cost of renting in Norway was recorded in the second quarter of 2022, the latest figures from Real Estate Norway (Eiendom Norge) show.
"Eiendom Norge's rental housing price statistics show that there was a historically strong rise in rental housing prices in Norway in the second quarter of 2022. Stavanger and Sandnes had the strongest growth with an increase of 5.2 per cent, followed by Oslo with 3.2 per cent and Trondheim with 2.5 per cent," Managing Director of Eiendom Norge, Henning Lauridsen, said.
However, the cost of renting in Bergen dropped 3.1 percent in the second quarter. Despite this, rental prices had increased sharply in Bergen and the west of Norway in general overall in the past year.
During the last 12 months, Stavanger/Sandnes and Bergen had the largest rental price increases with rises of 10.3 and 6.6 percent. Trondheim had the third largest growth with 4.6 percent, followed by Oslo with 3.6 percent.
"We link the strong growth in rental prices in west and south-west Norway to strong growth in the Norwegian economy as a result of increased activity in the oil industry in this region. In the student city of Bergen, prices are probably also driven up because the pandemic is over and the infection control measures have been lifted," Lauridsen explained.
Another thing reported by Real Estate Norway was a low supply of rental homes in Norway.
"We have never previously registered such a low supply of homes for rent on Finn.no. While the supply is relatively stable in Bergen and Trondheim, the supply has decreased a lot in Stavanger/Sandnes and Oslo. In Oslo, the supply is at a disturbingly low level, which has matched up with reports in Media," the managing director said.
At the end of June this year, there were 45 percent fewer rental properties on the market compared to the year before, financial newspaper Finansavisen reported last week.
"It is a demanding time for those entering the rental market right now. There are simply too few homes on the market," Jørgen Hellestveit, marketplace director at Finn Eiendom, told Finansavisen.
Despite the more limited selection, rental homes are also being snapped up much quicker than last year. Last year, a home was listed on the market for 13, 13 and 12 days in May, June and July before a lease was signed. In the same months this year, properties lasted 10, eight and 11 days on the market before a tenant was found, according to Finn.no.