Norway's Housing Crisis: Inefficient Processes, Not Regulations, Drive Up Costs

Technical requirements and sustainability measures are incorrectly identified as the main culprits behind Norway's sluggish housing construction and escalating costs, according to senior advisors at SINTEF Community. They argue that the focus on TEK17, the building technical regulation, as a "scapegoat" overlooks more significant factors.

The authors contend that while construction costs have surged in recent years, impacting both the industry and developers, the core issues lie in inefficient processes and productivity. Projects are being put on hold, and Norway is building fewer homes than at any point since the post-war era, despite the government's ambition to construct 130,000 new homes by 2030. Prices are particularly high in high-demand areas, creating a significant barrier for first-time buyers and young families.

Instead of reducing requirements, the article suggests that attention should shift to the planning and building permit processes. These procedures are often bogged down by "endless disputes, delays, and dispensations," consuming vast resources and adding months to project timelines, thereby increasing costs. The authors emphasize that weakening technical standards is unlikely to yield substantial savings, especially considering that requirements reducing energy use and emissions can lead to better indoor environments and more durable buildings over time.

Furthermore, the article points out that construction defects alone cost society between 10 and 30 billion kroner annually. Therefore, costs must be evaluated throughout a building's entire lifespan, not just at the point of completion. The authors advocate for a more holistic approach, focusing on improving productivity and streamlining bureaucratic procedures rather than compromising on technical quality and sustainability.