Rental market survey, 2006

Statistics Norway publishes new official statistics for the Norwegian rental market. The Rental Market Survey shows that tenants face an average monthly rent of NOK 4 597, or an annual rent of NOK 877 per sqm for a rental unit in the Norwegian rental market as at the 2nd quarter 2006. The rental market is however characterised by large variations in rents due to geographical areas, physical unit attributes, period of tenancy and relations between tenants and lessors. The average estimates must therefore be treated with some caution.

Large differences between areas

Geographical location is a crucial explanatory variable in differences in rents. Tenants living in Oslo and Bærum experience a higher monthly rent than the rest of the country, with NOK 6 335 on average. Tenants in this area also experience the greatest rent variation. The rent level in other main cities (Bergen, Trondheim, Stavanger and Tromsø) follows with monthly rents of NOK 5 030. The lowest rents are found in sparsely populated areas where a tenant must pay NOK 3 519 on average. The rent dispersion is also the lowest in these areas.

The rent survey's results further show that on average tenants in Oslo/Bærum must pay NOK 5 895 and 7 027 for a rental unit of two and three rooms, respectively. In the other main cities, the tenants face rents of NOK 4 468 and 5 205 for the same rental unit sizes. In sparsely populated areas, the rents amount to NOK 3 194 and 3 502 respectively. The survey shows that 2-room and 3-room rental units are the most common unit sizes, and that the average rent levels at a national level are NOK 4 313 and 4 804 respectively.

Highest rents from private landlords and private letting agencies

The survey shows that the relations between tenants and lessors can have a major impact on the rent level. Tenants renting from private landlords or private letting agencies face the highest average rent - annual rent per sqm is NOK 1 084 at a national level. The most dominating letting status is, however, private individuals letting out dwellings or parts of their own dwelling. Tenants renting from private individuals experience an annual rent per sqm of NOK 885. Tenancy agreements with family and friends often result in rent discounts - the annual rent per sqm amounts to NOK 577 on average. Tenants renting from municipalities and student organisations face an annual rent per sqm of NOK 988.

The survey shows differences in the rental market among the main cities in Norway. In the capital city of Oslo, private landlords and private letting agencies cover a greater share of the total rental market compared to other main cities - 32 per cent in Oslo, while in the city of Stavanger the share amounts to only 7 per cent. On the other hand, in the city of Stavanger the municipality covers a much larger share of the total market compared to other main cities - 20 per cent compared with, for instance, only 9 per cent in the city of Tromsø.

Period of tenancy important factor

The Rental Market Survey shows that the period of tenancy is an important factor for the rent level. The average rent level for tenancies from 2005 and 2006 is NOK 4 869, while tenancies from the period 2000-2004 show an average rent level of NOK 4 617. The monthly rent for tenancies prior to 2000 amounts to NOK 3 933 on average.

New official rental statistics

The Rental Market Survey was first carried out in 2005 and is now established as official annual statistics of the Norwegian rental market. The survey was initially established as an external commission and was based on the need for more detailed and improved rental statistics. See “ About the statistics ” for more information about the survey.

More information

In StatBank , average monthly rents and annual rents per sqm stratified according to different segments of the rental market are made available.

Tables:

• Table 1 Average monthly rents and annual rents per sqm by area and letting status. 2nd quarter 2006. NOK
• Table 2 Average monthly rents and annual rents per sqm by area and number of rooms. 2nd quarter 2006. NOK