Rental prices have increased especially in two cities this year. The reason is that many students who struggle for housing are forced to raise their wages.
In Norway, 1 in 4 people rent the house in which they live.
In Oslo, rental prices have been relatively stable over the past year, in July the average rental price was NOK 12 per month. It is at the same level as a month earlier and by 948 percent. lower than in July last year.
- Rental prices in Oslo have stabilized at record highs level, says Kjetil J. Olsen, CEO of Husleie.
On the other hand, sharp increases have been noticed in Trondheim and Bergen for those who intend to rent an apartment. Olsen says the reason seems to be the record number of applicants at Norwegian universities.
- This means that the pressure on housing in student cities is greater than ever. This causes the demand for housing and prices go up. In addition, we see that many of the foreign workers who returned home after the outbreak of the pandemic are now returning, Olsen explains.
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Apartment rental prices are soaring. Prices from space
There has been a huge increase in prices in Bergen. Before the pandemic, in February 2020, the average monthly rental price for an apartment in Bergen was NOK 8323. In July this year. the average was already NOK 10455.
Also in Trondheim, the average price was just over 8000 kronor in the few months of last year. In July this year, the average in the capital Trøndelag was as much as 9363, -.
- Bergen and Trondheim have traditionally been much cheaper than Oslo. But now renting apartments in these two cities is getting really more expensive and the prices are surprising us. I think a lot of students have to find part-time jobs to make ends meet. Student loans and scholarships are not enough, says Olsen.
She goes on to say that both landlords and tenants report that decisions need to be made very quickly and that tenants often have to check in on a very short notice.
- Do you think prices will rise further?
– We believe that the market will now stabilize – but at a very high level. The main player here is the development of the delta variant virus. If new closures occur, we may see a decline in rental prices, as we saw when Erna Solberg closed Norway in March last year, Olsen says.
