Norges Bank

Staff Memo

Residential construction and household formation

Sverre Mæhlum, Per Marius Pettersen and Hong Xu
Staff Memo

Population growth in Norway over the past 10-15 years has been strong, while residential construction activity has been fairly low. At the same time, household size continues to decline. The increase in the number of households has been higher than the increase in the number of new housing units built, particularly in urban areas. This construction shortfall has contributed to rapid house price inflation in this period. Since end-2015, population growth has slowed and the number of new units built has increased, which has reduced the construction shortfall.

Staff Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank.

ISSN 1504-2596 (online)

Published 7 January 2019 09:00
Published 7 January 2019 09:00