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Housing prices through the roof

Studio apartments in the Norwegian capital have had a price increase of 340 percent during the last 10 years.

In the same period, the price of five room apartments increased with 177 percent, according to the Norwegian paper Dagsavisen.

It is no surprise that the housing prices have increased so much the last couple of years, hitting studio apartments particularly hard. However, the fact that the increases were so large has surprised the researchers.

«We have looked at numbers that many people had already seen,» said Erling Røed Larsen, researcher are Statistics Norway (SSB), to Dagsavisen. «The shock is that there is such a large difference between small and large apartments. It shocks me that there is such a large increase on the smallest apartments.»

The reasons why the housing prices have increased so much more than the general price level are many. According to Røed Larsen, the two main reasons are that the numbers of households are increasing and that the households are smaller than before.

In Oslo, the lack of housing has also contributed to the price increase. There is just not enough housing to cover the demand.

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