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2023 is a weak year in terms of new building permits: Difficult times in the construction industry

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According to Statistics Norway, in 2023, 22 permits were issued to start building new houses. You have to go back to 778 to find a year in which fewer permits were issued to start housing construction.

Difficult times in the construction industry

2023 was a weak year for new building permits, for both residential and commercial buildings, compared to 2022. this number has decreased 23,4 percent

– Reports about difficult times in the housing industry they show well in the numbers for 2023. We have to go back to the end of the financial crisis, to 2009 and 2010, to find such a small number of building permits for new houses, says Magnus Espeland, an adviser at Statistics Norway.

The biggest a decline was recorded in numbers building permits for new apartments in the former Viken (Østfold, Akershus and Buskerud), where the decline was 64,7% and 49,8%, respectively. and 40 percent

– The number of residential buildings completed in 2023 is at the same level as two years earlier. Due to the small number of permits for construction to begin in 2023, we can expect more in the future smaller number residential buildings put into use," says Magnus Espeland.

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The number of building permits for holiday homes has dropped by almost half

Statistics Norway has statistics on the number of permits to start the business of holiday homes in the years 2010-2023, and during this period the number of permits to start a business has never been lower than in 2023. Compared to 2022, this is a decrease of 46,7%.

– If we compare the number of building permits for new holiday homes with the peak year in 2021 during the coronavirus pandemic, when the number of holiday homes built was very high, the decline is dramatic, says Magnus Espeland.

Compared to 2022, it happened in 2023 decline in numbers completed holiday homes by 30,3%.

Decrease in permits for the construction of commercial space

In 2023 year building permits have been issued approximately 3,5 million square meters of commercial usable space. This is a decrease of 24,4%. compared to 2022 and the lowest level since 2005.

We observe a large decrease in usable area for companies, usable area for recreational buildings, residential garages, etc. and usable area for apartments compared to the previous year. This clearly illustrates that 2023 was a very difficult year for construction industry.

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Source: Norwegian Office Statistical, Photo: Wojtek Sobieski

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