When OsloMet Research professor Jardar Sørvoll began his research career, he couldn’t know that one day he would be helping parliament fix Norway’s housing system. Today, he is one of the country’s experts in housing and leads HOUSINGWEL, OsloMet’s Centre for Housing and Welfare Research.
Last year, he used his experience to recommend reforms to the legal regulation of the rental market as the head of the commission on the Norwegian Rental Act.
Housing impacts life
Sørvoll says housing quality in Norway reflects its status as a rich country. Houses are warm, they’re well constructed, and the roofs mostly don’t leak.
At the same time, he says Norway is facing real problems.
“The standard of housing is high, but there are issues connected to affordability and inequality, and that affects people’s life chances.”
Homeownership is a major challenge for those without high earnings or financial assistance from their families. These households can rarely afford to live in the most attractive areas.
The rental market offers limited relief; a single person earning a normal wage can’t always afford to live anywhere near their work and will have to spend a lot of the day commuting. This is time that could be spent improving one’s chances of a better life by studying, networking, or just enjoying themselves.
Norway’s housing inequality problem
Sørvoll’s began his study of this topic with a masters dissertation on the Norwegian Labour Party’s shift toward more neoliberal policies. It’s a very broad field, so he focused on the housing aspect.
Over the years, he has studied both historical trends and current issues like the cost of housing. He also researches housing for the elderly and the concept of ‘aging in place’ so that as Norway’s population ages, people are able to safely stay in their homes.
His interest goes beyond academic research to being a public voice for housing policy.
For Sørvoll, part of being a researcher is being active, not in a partisan way, but an informative way to contribute to the public conversation.
“We don’t have a housing issue, we have a housing inequality issue” says Sørvoll, “that’s the best way I can think to describe it”. As prices continue to rise, he cautions that benefits are primarily going to those who already own property while making it harder for new buyers to enter the market.
Sørvoll continues by saying: “There is no ‘Generation Rent’ in Norway, many first-time buyers can still afford to become homeowners. But it is getting increasingly difficult to buy a home in the most attractive areas if you do not earn a lot, inherit a lot, or have a partner that earns a lot”.
The standard of housing is high, but there are issues connected to affordability and inequality, and that affects people’s life chances.– Jardar Sørvoll
Undermining social housing
It wasn’t always like this. According to Sørvoll, Norway had a housing system with more government regulation and support for families in the decades after WWII. There was a strong public housing bank that financed approximately 2/3 of all homes and public subsidies for land and construction. This meant that families, whether blue or white collar, could afford to buy a house on regular wages. In addition, most cities had some form of social housing for those who needed it.
This all changed in the 1980s. Norway removed many of the regulations that incentivized developers and kept prices in check. Since then, prices have been rising with no signs of slowing. Norway also has a low number of social housing units: municipal rented housing only accounts for four percent of the housing stock nationally.
Sørvoll does not see the postwar era as a golden age without challenges – he notes that nearly all of the support was aimed at families and neglected single workers – but thinks there is something to be learned from the policies of that time.
“We need to ask ourselves if we need to rebalance the role of the state, the individual, and the private sector in the provision of housing.”
Better policy for accessible housing
These ever-increasing prices have made it difficult for low-income groups to get by in the housing market. More social housing would not fix all the problems, but Sørvoll thinks it would help some of the most disadvantaged households.
“We need a steady supply of rental housing. Housing policy has to take that into account,” he explains.
Sørvoll points out that increasing support aligns with the goals of the Norwegian Universal Welfare state. Norway’s other benefits like sick pay and parental leave are quite good by international standards. However, the social housing sector is not so generous. Instead, Sørvoll says only the most desperate people – those facing financial hardship plus additional factors like disability or having many children – are able to get help.
Limited housing, tough choices
For the past few years, Sørvoll has been focusing on the current social rented housing sector in Norway. His research found that municipalities simply do not have enough housing to cover everyone’s needs. The people that manage this limited stock have to make complex and difficult decisions about how to prioritize the needs of those who are already in the system and new people who need to access it.
As a result, Norway has one of the more needs-tested and market-oriented social rented sectors among the wealthy counties.
Sørvoll thinks that any changes to rental housing policies will need to balance the needs of both renters and landlords. It is important to look at the evidence and make sure housing is part of the public debate.
“Given the scope of the problem, it receives far too little attention from the media and national politicians.”
Looking to the future
Sørvoll has made several recommendations through his academic publications and as part of his work in the Rental Housing Act commission. He hopes these will improve the situation in Norway.
While providing more housing won’t fix everything, expanding access to stable rental housing would help groups such as refugees, individuals with health issues, and those recovering from addiction, all of whom struggle in the current system.
Contact
References
Needs-Tested and Market-Based Social Rented Housing: The Extreme Case of Norway? (scup.com)
