The Norwegian Housing Bank
Responses to Housing
Challenges -
A State Perspective on
The Case of Oslo
By
Anne Ruden
The Norwegian Housing Bank
The Norwegian Housing Bank
Norway
58°
71°
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
The Oslofjord
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
The City between the Fjord and the Forest
The Norwegian Housing Bank
The Norwegian Housing Bank
• Parliamentary system of government
• Social policies and education fully
decentralised
• Implementation of housing policy mainly
carried out by
– the 25 (15) districts,
– The Housing and Real Estate Office
– The Planning and Building Authority
System of Government i Oslo
The Norwegian Housing Bank
Prices of flats in Oslo, Rural Housing and
Consumer Prices
0
200
400
600
800
1000
1200
1400
1600
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Blokk, 75 kvm Oslo Enebolig, 140 kvm Hedmark KPSFlats 75 m2 in Oslo 140 m2 in Hedmark CP
The Norwegian Housing Bank
Annual new housing construction in
Norway total and Oslo
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
1950-
54
1955-
59
1960-
64
1965-
69
1970-
74
1975-
79
1980-
84
1985-
89
1990-
94
1995-
99
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Hele landet
Oslo
Oslo Total
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Builders of new
Housing Construction in Oslo
0
500
1000
1500
2000
2500
3000
1960-64 1965-69 1970-74 1975-79 1980-84 1985-89 1990-94 1995-99
Andre
Cooperativt
Other
Co-operative
The Norwegian Housing Bank
The Norwegian Housing Bank
0
10
20
30
40
50
60
70
80
pct.
Home ownership Private rental Public rental
Housing ownership structure in Norway
Oslo
Norway
The Norwegian Housing Bank
0
0,1
0,2
0,3
0,4
0,5
0,6
0,7
0,8
Prod.s
ubs
Hous.allo
wances
Denmark
Sweden
Finland
Norway
Housing Subsidies in
Scandinavian Countries
Pct. of GNP 1999
The Norwegian Housing Bank
The main challenges
• Optimising existing resources: – More targeting of disadvantaged groups
– Provide housing and follow up for people with complex problems
– Acquire resources and flexibility to meet the needs of a changing market
– Transparency in transfers and policy schemes
• How – More emphasis on planning and on documentation of needs
– Increased delegation to the 25 (15) districts
– More economised use of municipal housing – market pricing
– Promote co-operation between sectors and region
The Norwegian Housing Bank
Who needs housing assistance in
Oslo?
live in low-income
households
8% need social
welfare
3% need housing
assistance
17 % of
population 3 pct of total
households
57% live in inadequate
housing
31% are homeless
13% in short-term tenancy
The Norwegian Housing Bank
New ambitions
“The Municipality shall play an active role to promote and facilitate build of 40 000 new, functionally and environmentally good housing units by 2015”
What types of housing units?
28 000 large projects
8 000 smaller projects
4 000 in densification
The Norwegian Housing Bank
And later?
Room for more;
• land reserves for
– 29000 more housing units in new plots
– 23 000 housing units in densification
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Main Strategies
• Densification
• Focus on main connection points for public
transportation
• Develop last “virginal” land areas
• The “Fjord-city” developments
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How?
• Better planning tools
• Co-ordinated processes for planning and
implementation
• Deliberate use of municipal land
• Planning deals as a housing policy
measure
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
The Fjord City
1. Filipstad-Tjuvholmen
2. Pipervika
3. Akershus Castle
4. Bjørvika-Bispevika
5. Sørenga-Sjursøya
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
1. Filipstad - Tjuvholmen
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
2. Pipervika
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
3. Akershus Castle
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
4. Bjørvika - Bispevika
The Norwegian Housing Bank
The Municipality of Oslo Department of Planning and Building
5. Sørenga - Sjursøya
The Norwegian Housing Bank
How to Increase Affordability
• Impact of a better balanced housing market
• Demand side measures
• Construction of low cost housing units;
– Land priced at half market price, subsidies retained
– State subsidies
– Active land use policy /zoning and property
management (carrots and sticks)
The Norwegian Housing Bank
Planning deals as housing policy
measures – used with caution
To be used to stimulate housing development – not choke it
A joint commitment between city and developer
• Developer: • Roads, water, basic green areas
• Municipality: • Schools, primary health and social care
• To be negotiated: • Borderline infrastructure; extensive developments
The Norwegian Housing Bank
Other ways for a municipality to
influence private developers
• Take initiatives
• Bring parties together
• Active use of municipal property
• Co-ordinate its own activities
• Integrate new developments with urban
renewal
• Initiate pilot projects
The Norwegian Housing Bank
Conclusion
• The market in need of better framework conditions to solve the housing needs of Oslo
• The efficiency of a demand side subsidy depends on the response of the housing supply
• Some supply side subsidies needed for new affordable housing
• Affordable housing needs an active land policy
Housing policies depend on the underlying urban policies