Oslo housing market trends and buyer challenges

The Oslo housing market is undergoing a significant transition toward a buyers' market, driven by high interest rates and increased supply. In the first half of 2026, the number of first-time homebuyers in the capital fell by 10 percent, even as a record number of small apartments became available.

Recent data shows that unsold homes in Oslo have increased by 40 percent compared to the previous year, with the average time to sell a property rising to nearly 40 days—a level not seen since the 2008 financial crisis. While national housing prices have seen a 4.9 percent increase this year, price growth in Oslo has turned negative.

These conditions have created substantial barriers for young buyers. The requirement for first-time buyers to earn a certain multiple of their income has risen sharply, with current data indicating they now require approximately 6.6 times their annual income to purchase a home, compared to much lower historical averages. Norges Bank has raised the policy rate to 4.5 percent, further impacting purchasing power.