Norges Bank projects slower house-price growth and modest construction rebound
Norges Bank expects this year’s residential price increase to be lower than last year and forecasts a gradual pick-up in housing investment starting next year.
The central bank’s newest policy paper indicates that residential price growth will slow this year relative to the prior period, reflecting a gradual easing after a year-and-a-half of declining momentum. Regional analysis points to a particularly soft market in the Oslo region, whereas other major urban areas still register healthy price advances. Norges Bank noted a persistent shortage of new housing supply, but expects construction activity to improve modestly beginning next year.
Higher household purchasing power and future interest-rate adjustments are seen as factors that could lift prices over the longer term. Investment in housing is projected to increase gradually, though the overall level will remain below early-2023 figures.
Why it matters
The outlook shapes mortgage rates and housing affordability for Norwegian households.
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