Norway: Selected Issues
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This paper examines various factors driving the uptrend in house prices, with a particular focus on institutional and structural factors. The extent of a possible valuation gap is gauged empirically in the context of a cross-country panel analysis of long-run fundamental determinants of house prices using data from 20 OECD countries. Norway has seen a long housing boom since the mid-1990s apart from a brief and mild downturn during the global financial crisis, with house price inflation exceeding income growth by a wide margin. Although real house prices have also been up strongly during the same period in the majority of advanced economies, Norway experienced one of the highest increases in the OECD. With house prices rising ahead of income, the average cost of a home relative to the median household income nationwide has almost doubled since the mid-1990s, rising much faster than OECD average. In absolute terms, the house price-to-income (PTI) ratio is also high relative to a range of countries.
Series:
Country Report No. 2017/181
Subject:
Gender Housing prices Labor Prices Tax incentives Taxes Wage gap Women
English
Publication Date:
July 5, 2017
ISBN/ISSN:
9781484306659/1934-7685
Stock No:
1NOREA2017001
Pages:
72
Please address any questions about this title to publications@imf.org