A pressing problem: Are the rural housing markets frozen?
In many rural areas, the market value of houses is low – often considerably below the cost of construction. As a consequence, it is very difficult to obtain the loan to build or buy. This ‘freezes’ the market and has a negative impact on rural development overall. So, how could the rural housing markets improve in the Nordic countries?
This Policy Brief explores aspects of the dynamics of the ‘frozen’ rural housing market in the Nordic Region, with a specific focus on the role of financing, the part played by municipalities and the potential benefits of a larger rental market. In many rural areas, the market value of houses is low – often considerably below the cost of construction. In consequence, it is very difficult to obtain loans to build or buy. This ‘freezes’ the market and has a strong impact on rural development overall, in effect acting as a boost to the trend towards urbanisation and the depopulation of rural areas. In this Policy Brief, we will explore ways to counteract this dynamic.
This Policy Brief is a part of the work of The Nordic Thematic Group on Sustainable Rural Development 2017-2020.
