September 20, 2021

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Housing Prices - Warning Shouts: - A Great Inequality Machine

Housing Prices – Warning Shouts: – A Great Inequality Machine

– The housing market is becoming a major inequality machine, where the working class can leave the cities if growth is allowed to continue, says SV leader Audon Lisboken to Parsons, the financial website of Doc Platt.

The party leader reacts to the results of SV’s own version of the established nurse code issued by Indom Norge and IndomsWerdy. The latter receives funding to purchase a large share of the homes sold, with a single nurse earning over NOK 600,000 and a NOK 200,000 student loan.

Concern: SV leader Adun Lisbokan is concerned about the growth of the housing market. Photo: Nina Hanson / Doug Pledet
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The claim is that housing prices in a city will be lower if the nurse is able to buy homes at a higher rate. If the nurse cannot afford to buy any home, prices can be a problem.

The nursing industry is considered an appropriate starting point because income represents a good Norwegian income with low economic fluctuations.

SV believes the index slows market growth and is based on professions such as hairdressers, shop staff, electricians, ambulance workers and fishermen.

The party found the following:

  • A single hairdresser can only buy two 21-25 square meters of rooms in a shared apartment in Oslo and a 28 square meter studio in Askar. The rest are very expensive. The hairdresser could not afford a place to live in Perum, Lilstrom, Nittal or Norde Follow. The hairdresser cannot afford an apartment in Dromon.
  • A fisherman can buy one of four houses in northern Norway (Nordland, Troms and Finmark) or one in five houses in western Norway
  • A postman can buy three percent of homes in Trentheim.
  • A store employee can buy two out of 100 homes in Bergen.
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– Need to do something with cities

According to the latest Nurse Index, the average paid nurse can buy 1.3 percent of homes in Oslo in the previous six months. This is three percent less than last year.

For individuals in low-wage industries, the situation is very demanding.

SV calculates the average annual income based on Norwegian statistics, and assumes that those individuals have no student loans or other loans. Home prices are taken from Finnnow on a specific date in August, so offer a snapshot based on price quotes.

Audon Lisbagan believes the statistics suggest a frightening development.

– It tells us about what kind of differences we may get in the future. This is a development that has accelerated over time. If it is allowed to continue, it will really strengthen the difference — Norway, and it is almost impossible for those who work in cities to own a home near the workplace. Many may be permanently banned. We risk a geographical change in working class industry, and it will do something with cities that I think are important to avoid, says Lisbon.

He adds:

– With the increase in prices, it is becoming more and more difficult to get tickets to the market.

Increase in tenants

In recent years, housing prices have risen more than income levels in Norway. Nevertheless, a large portion of the population is in the housing market compared to other countries.

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More than eight in ten live accordingly SSB Home owned by one or more members of the family. It has been said that this is policy Maintain and strengthen this line of entitlement.

However, the proportion of tenants has increased by one per cent since 2015. This equates to about 90,000 tenants in six years. The proportion of homeowners has declined accordingly.

The proportion of homeowners seems to have reached the ceiling Consumer CouncilIn the worst case scenario, it fears a shortage of qualified labor in important social functions where prices are high.

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– What do you think should be done to avoid underlined growth?

First, the SV leader must appoint a housing minister, and a national housing plan must be prepared in which the government is responsible for building adequate and proper housing. The SV will create tax breaks for homeowners, make tax assets more difficult, and create a government incentive for so-called third-party housing — cheap homeownership and rental housing.

– We want a solution with a reduced tax on income, and the national taxation of property, i.e. those with normal incomes come out positive. It will also control inflation, says Lisbon.

– Are you being criticized for paying too much attention to home taxation and too little focus on growth?

– We have to do both. It is naive to think that you can only create from this problem. One of the main reasons for price pressure is that investing in real estate is more attractive than business. It increases the price for everyone, says the party leader.

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More young buyers

According to brokerage industry figures, house prices across the country are set to rise by almost nine percent by 2020. Growth continued into 2021. Arrows pointed downwards during the summer months, ending the week with a 1.9 percent increase in August ahead of the Indus Norge.

Growth is expected to slow in the fall, with Norges Bank raising its core interest rate.

Despite rising prices, the proportion of young people buying their first home without co-owners has been on the rise in recent years. Experts have linked growth to lower interest rates, higher growth in income and more people getting help from parents.

Also, in the year of the epidemic 2020, the number of first-time buyers has increased, says one Report Produced by Samfunnsøkonomisk Norges Eiendomsmeglerforbund (NEF) and Ambita. “If high price growth continues, it will help reduce opportunities for young people in the housing market,” the report points out.

The accompanying report shows that rising rates, especially in Oslo and other cities, are driving people to buy their first home with someone.