Norwegian households under 40 years old are better off buying a home than renting according to calculations by Statistics Norway and DNB Bank. Their analysis shows that for the majority in this age group, monthly costs for a mortgage are lower than comparable rent payments over a 20-year period when factoring in price growth and tax deductions.
The report compares purchasing a 70-square-meter apartment in Oslo with renting a similar unit. Over 20 years, buyers would pay about NOK 12,000 monthly on average, including principal, interest, and maintenance. Renters would pay roughly NOK 18,000 monthly on average. The gap narrows outside major cities but remains significant in urban areas.
Finance professor Kjell Nordal at the Norwegian School of Economics cautions that individual circumstances matter. A buyer needs stable income to cover higher upfront costs and potential interest rate hikes. Renters, meanwhile, gain flexibility to relocate for jobs or education without selling a property.
DNB’s housing economist Sondre Solstad notes that renters’ costs rise with inflation, while buyers lock in long-term payments. "For those with steady jobs and savings, buying is cheaper in the long run," Solstad said. He adds that first-time buyers should aim for a 15% down payment to avoid high loan-to-value ratios.
The analysis does not account for maintenance costs for owners or service charges for renters. It also assumes buyers keep the property for at least 20 years. Shorter ownership periods reduce the financial advantage of buying.
Source: e24.no