Norway's housing market became less accessible for a single nurse last year, despite wage growth and interest rate cuts. The Nurse Housing Index found that a nurse could afford a smaller share of homes sold in 2025 than in 2024 in most major cities.
Anders Lund Francke, modeling and analysis chief at Eiendomsverdi AS, stated the core finding clearly. "It has become more difficult for the nurse to become a homeowner in Norway and in the major Norwegian cities in 2025," Francke said in a press release. "The exceptions are Trondheim and Oslo."
Understanding the Nurse Index
The index, a joint project by Eiendomsverdi and Eiendom Norge, measures what percentage of sold homes a single nurse can obtain financing to buy. A high percentage indicates lower, more accessible prices in a city. The calculation is based on a nurse with an average annual salary of nearly 720,000 kroner, as reported by Statistics Norway (SSB), applying for a standard mortgage with a 15 percent down payment.
Francke pointed out this salary context is important. "Many in Norway and in Oslo have a lower salary than this," he noted, implying the affordability crisis extends far beyond the nursing profession. The index serves as a stark benchmark for middle-income housing accessibility across Norwegian urban centers.
A Nationwide Problem with Two Exceptions
The national trend shows a tightening market, but the data reveals sharp regional differences. In Trondheim, a nurse's purchasing power improved by several percentage points. In Oslo, there was a marginal improvement of 0.5 percentage points. Every other major city saw a decline.
The practical outcome of these statistics is dramatic. A single nurse can now afford one in three homes sold in Trondheim. In Oslo, that ratio plummets to just one in 35 homes. Francke explained the reality behind the Oslo number. "In practice, this means the ownership market in Oslo is completely inaccessible for the nurse without significant saved funds or help from others," he said.
Why Prices Outpaced Pay
This deterioration occurred during a year with ostensibly positive economic signals for buyers. The Norwegian central bank, Norges Bank, lowered its key policy rate twice in 2024. The average nurse's salary also increased by nearly 40,000 kroner. Yet, these gains were entirely erased by faster-rising home prices.
Francke identified the core mechanism. "It is due to the fact that housing prices have increased more than purchasing power has," he stated. When asked for solutions, his answer focused on market fundamentals. "The solution is lower interest rates and increased home building," Francke said.
Construction as a Prescribed Solution
The industry association Eiendom Norge agrees emphatically with the construction argument. Its chief, Henning Lauridsen, pointed directly to Trondheim's performance as proof of concept. "Trondheim has been among the best at building homes in Norway for several years, and the result we see now with a significant improvement in the nurse's ability to become a homeowner," Lauridsen said.
He contrasted this with the national outlook for new housing supply, which remains grim. "2026 continues with a historically low number of completed new homes and housing investments," Lauridsen stated. He explained the lag between sales and completion, linking current shortages to decisions made years prior. "What is completed this year is what was sold in the first years of the housing crisis in 2022 and 2023."
This pipeline issue suggests the supply constraint is not a short-term blip but a structural problem with long-lasting effects on affordability. The lack of new projects initiated during the market downturn several years ago is now materializing as a scarcity of finished homes, sustaining upward pressure on prices for all existing properties.
The Broader Economic Implications
The Nurse Housing Index is more than a sector-specific metric, it is a barometer for essential public service workers and the middle class. If a profession with a solid, state-negotiated salary averaging over 700,000 kroner is locked out of homeownership in the capital, it raises questions about urban sustainability, recruitment, and social equity. Municipalities may struggle to attract and retain healthcare staff, teachers, and other critical personnel if owning a home near their workplace is an impossible dream.
The divergence between Trondheim and other cities, particularly Oslo, also highlights how local political decisions on zoning, permits, and land use have direct, measurable consequences for affordability. Trondheim's consistent investment in new housing stock is presented as a deliberate policy choice that has yielded tangible results in this index.
Looking Beyond the Current Cycle
The report implicitly challenges the expectation that monetary policy alone can solve housing affordability. While lower interest rates provide some relief on monthly payments, they can also stimulate demand and push prices higher, as seen in the 2024-2025 period. The analysts argue that increasing the physical supply of homes is a necessary complementary action to create lasting improvements in accessibility.
For prospective buyers, the message is one of continued pressure. The modest interest rate cuts provided by Norges Bank were not enough to offset the fundamental imbalance between demand and supply in most markets. The wait for a more favorable environment continues, dependent on both central bank decisions and the slower-moving machinery of municipal planning and construction.
The final takeaway from the index is a warning about the health of the Norwegian housing market. When solidly employed professionals with good salaries are increasingly excluded from ownership, it signals a market that is failing to serve a core societal function. The question for policymakers in Oslo and other struggling cities is whether they will follow Trondheim's lead and prioritize the construction needed to reverse this trend, or accept a future where homeownership is reserved for the affluent or those with family wealth.