To buy or not to buy – that is the question. While it seems an obvious choice, especially as Norway is a nation of homeowners, it has recently become more challenging.

The reason for this is the 12 interest rate increases since 2021. The current interest rate in Norway is four percent and is expected to peak at 4.25 percent.

Rising house prices in recent years also mean a much larger chunk of money is needed to secure a mortgage.

This effect is doubled when you consider the number of properties in Norway which belong to housing associations, meaning shared debt repayments and joint costs increase.

However, this isn’t to say things have been much rosier for tenants. Interest rates and property tax changes have increased costs for landlords. This also means fewer homes are available, and supply can’t keep up with demand.

All in all, this means that the cost of a two-room apartment in Norway is 6.1 percent more expensive than a year ago. The average cost of renting a two-room flat was 14,402 kroner per month in August, according to figures from the rental agency Utleiemegleren. The price of a detached house was 21,533 kroner per month – an increase of 14.5 percent.

In Oslo, it cost on average 16,189 kroner per month for a two-room flat and 30,422 kroner for a detached house. In Trondheim, a flat cost was lower at 11,976 kroner for a two-room apartment. Meanwhile, a place in Bergen with two rooms was around 13,512 kroner per month.

This is just the cost of rent. Tenants will likely need to pay for utilities such as energy. Depending on where they move, water and Wi-Fi may already be included. Energy bills can range from around 700-400 kroner for a small apartment each month.

When renting in a housing association, the joint costs and shared debts must be included in the rent price. This means it cannot be charged separately.
In August, the average home price in Norway was 4.54 million kroner.

If you were to buy a home for the average house price, you could afford to buy pretty much anywhere in Norway. Although, your options will be more limited in the biggest cities.

The most common deposit required in Norway is 15 percent. Currently, interest rates on mortgages are between 5 to 6 percent.

READ MORE: Are Norway’s mortgage requirements different for foreign residents?

Were you to buy a house in Norway for 4.54 million kroner with a mortgage of 85 percent over 25 years – the mortgage would cost between 22,000 and 24,900 kroner per month, depending on the rate you get.

This would cost a few thousand kroner more per month than renting a three-bedroom flat in Oslo at an average cost of 19,821 kroner each month.

Were you to extend the repayment period to 30 years, you would be paying around 21,019 kroner per month.

One thing to remember is a large number of properties do belong to a housing association. This means that you will need to factor in the average monthly costs and the mortgage. What you pay in monthly fees will depend a lot on the association.

Amenities, the size of the property you are purchasing and the overall debt of the housing association you are buying into all affect the monthly costs. When purchasing a home in the region of 4.54 million kroner, you can expect to pay between 2,000 and 4,000 kroner in monthly expenses.

Those buying a house for less will typically have much lower costs. Even for 3.5 million kroner (one million less than the national average), you will be able to find homes in Oslo and Bergen. For a mortgage of just over 3 million kroner, the average monthly mortgage costs will be between 17,815 and 19,455 kroner.

For house hunters looking to buy for a different figure, the Norwegian Consumer Council’s Finansportalen has a mortgage calculator.