Norway to probe rising construction costs

Housing construction costs in Norway have risen sharply in recent years, but the government admits it does not fully understand why. A new study aims to shed light on the issue.

Norway’s Ministry of Local Government and Regional Development is launching a study to identify the key drivers behind rising housing construction costs in the country.

Construction costs in Norway have risen sharply in recent years, putting a brake on new housing development. The government says it lacks sufficient insight into what is actually driving the increases.

– We know that construction costs have risen due to more expensive raw materials, but we do not know what role public requirements, the industry’s choice of solutions or homebuyers’ preferences play, says municipal and district minister Bjørnar Skjæran.

The study forms part of the Norwegian government’s broader effort to accelerate housing construction. A review of national building regulations is also underway, with the aim of keeping only the requirements that are genuinely necessary.

– We need a more informed debate. When we change the building regulations, we must make the right changes, based on insight and knowledge, says Skjæran.

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