Where are the most expensive places to own a home in Norway?
Thanks to its housing model, Norway is a nation of homeowners. However, property taxes, energy costs and interest on mortgages all add up. These are Norway's most expensive places to live.
As many as 81.8 percent of the population in Norway owns a home, according to the national data agency Statistics Norway.
The country's high ownership rate is due to the "Norwegian housing model", a set of policies and market regulations designed to ensure as many people as possible can afford to buy and own their homes.
Being a homeowner isn't as straightforward as securing a mortgage and stumping up a deposit, however. Between running and maintaining the house, there are property taxes and mortgage payments to contend with.
This is without other fees, such as joint costs for those living in a housing association.
Unsurprisingly, Oslo has been named the most expensive part of the country for homeowners to live in, according to a new index from the Homeowners Association.
The average cost of owning a home in Oslo was 270,000 kroner per year in 2023 when using a 120 m2 detached home as the example property.
The costs include property tax, municipal fees, energy costs, interest costs, insurance costs and maintenance costs.
Eight of the other ten most expensive places to own in Norway were in the Oslo region. In Bærum, it costs 248,739 kroner per year to be a homeowner. Across the Oslofjord from the capital in Nessoden, housing costs were estimated to be 226,607 kroner per year.
READ MORE: Which municipalities in Norway charge the highest property tax?
Frogn municipality, home to Drøbak, was the fourth most expensive, with annual costs of 222,908 kroner per year. Lørenskog had housing costs of 217,531 kroner each year.
After that, things got slightly cheaper. Nordre Follo and Asker cost over 204,000 kroner per year to call home.
Hvaler, in southern Norway and close to the Swedish border, was the only place outside of the general Oslo area to feature in the top ten. There, owning and running a home costs 202,845 kroner per year.
After that Nittedal and Rælingen were ninth and tenth, costing 199,000 and 198,000 kroner per year respectively.
The average cost nationally was 180,000 kroner per year. Of this, interest costs made up over half of the total outlay of homeownership. Maintenance was the next biggest annual cost at 36,535 kroner per year.
Homeowners spent around 24,000 kroner per year on energy, according to estimates. Municipal fees amounted to 15,922 kroner per year. Insurance set homeowners back around 8,000 kroner annually, and property tax was around 3,000 kroner yearly.
Why is it so much more expensive to run a home in and around Oslo?
Part of the higher running costs in the areas around Oslo and the capital itself could be due to the higher property prices, which increase property taxes. Those in the capital are also likely to have a higher debt ratio when purchasing homes. This makes interest more expensive.
A higher loan due to the increased property prices also means increased repayments. Energy costs in Norway can fluctuate between its different regions, too.
Essentially, energy prices in the south are typically much higher than those in central and northern Norway. This is because north and central areas of the country typically have a power surplus, meaning they produce more power than they need, keeping prices low.
Meanwhile, there is a higher demand for power in the south and southern parts of Norway are linked up to the continent via power cables, which also increases energy prices.
What about the cost of owning in other parts of Norway?
Norway's second biggest city, Bergen, was just above the national average. There, the average home running cost was 184,454 kroner per year.
Also on Norway's west coast, but further south, is the city of Stavanger. Homeowners in Norway's oil capital forked out a similar amount per year. There, it costs about 183,964 kroner to run a home.
Trondheim, central Norway, was more expensive than both Bergen and Stavanger. There, tenants forked out 188,791 kroner per year.
Things were slightly cheaper above Norway's Arctic Circle. Housing costs in Bodø amounted to 177,876 kroner per year. It costs a similar amount to own in Tromsø at 177,954 kroner per year.
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As many as 81.8 percent of the population in Norway owns a home, according to the national data agency Statistics Norway.
The country's high ownership rate is due to the "Norwegian housing model", a set of policies and market regulations designed to ensure as many people as possible can afford to buy and own their homes.
Being a homeowner isn't as straightforward as securing a mortgage and stumping up a deposit, however. Between running and maintaining the house, there are property taxes and mortgage payments to contend with.
This is without other fees, such as joint costs for those living in a housing association.
Unsurprisingly, Oslo has been named the most expensive part of the country for homeowners to live in, according to a new index from the Homeowners Association.
The average cost of owning a home in Oslo was 270,000 kroner per year in 2023 when using a 120 m2 detached home as the example property.
The costs include property tax, municipal fees, energy costs, interest costs, insurance costs and maintenance costs.
Eight of the other ten most expensive places to own in Norway were in the Oslo region. In Bærum, it costs 248,739 kroner per year to be a homeowner. Across the Oslofjord from the capital in Nessoden, housing costs were estimated to be 226,607 kroner per year.
READ MORE: Which municipalities in Norway charge the highest property tax?
Frogn municipality, home to Drøbak, was the fourth most expensive, with annual costs of 222,908 kroner per year. Lørenskog had housing costs of 217,531 kroner each year.
After that, things got slightly cheaper. Nordre Follo and Asker cost over 204,000 kroner per year to call home.
Hvaler, in southern Norway and close to the Swedish border, was the only place outside of the general Oslo area to feature in the top ten. There, owning and running a home costs 202,845 kroner per year.
After that Nittedal and Rælingen were ninth and tenth, costing 199,000 and 198,000 kroner per year respectively.
The average cost nationally was 180,000 kroner per year. Of this, interest costs made up over half of the total outlay of homeownership. Maintenance was the next biggest annual cost at 36,535 kroner per year.
Homeowners spent around 24,000 kroner per year on energy, according to estimates. Municipal fees amounted to 15,922 kroner per year. Insurance set homeowners back around 8,000 kroner annually, and property tax was around 3,000 kroner yearly.
Why is it so much more expensive to run a home in and around Oslo?
Part of the higher running costs in the areas around Oslo and the capital itself could be due to the higher property prices, which increase property taxes. Those in the capital are also likely to have a higher debt ratio when purchasing homes. This makes interest more expensive.
A higher loan due to the increased property prices also means increased repayments. Energy costs in Norway can fluctuate between its different regions, too.
Essentially, energy prices in the south are typically much higher than those in central and northern Norway. This is because north and central areas of the country typically have a power surplus, meaning they produce more power than they need, keeping prices low.
Meanwhile, there is a higher demand for power in the south and southern parts of Norway are linked up to the continent via power cables, which also increases energy prices.
What about the cost of owning in other parts of Norway?
Norway's second biggest city, Bergen, was just above the national average. There, the average home running cost was 184,454 kroner per year.
Also on Norway's west coast, but further south, is the city of Stavanger. Homeowners in Norway's oil capital forked out a similar amount per year. There, it costs about 183,964 kroner to run a home.
Trondheim, central Norway, was more expensive than both Bergen and Stavanger. There, tenants forked out 188,791 kroner per year.
Things were slightly cheaper above Norway's Arctic Circle. Housing costs in Bodø amounted to 177,876 kroner per year. It costs a similar amount to own in Tromsø at 177,954 kroner per year.
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