The latest report from Boligprodusentene reveals that the Norwegian new housing market is suffering from a severe crisis, continuing its downturn into 2026. Sales of new homes fell by 31 percent in January, marking the lowest figures recorded since 2010 when the organization began tracking these statistics. According to Lars Jacob Hiim, the CEO of Boligprodusentene, the housing crisis is impacting everyone in need of housing, as the challenges of high construction costs and low market activity persist.

Despite an uptick in housing activity observed in the previous autumn, January's figures present a stark reversal, raising concerns about a potential long-term trend of declining new home construction. Hiim cautions against premature conclusions regarding the market's trajectory but emphasizes that the beginning of 2026 will be particularly challenging for the housing industry. With low activity, weak profitability, high bankruptcy rates within the supply chain, and uncertainty surrounding interest rate reductions, the conditions are dire for builders and those seeking new homes.

As the industry faces these hurdles, stakeholders are called to monitor the situation closely to determine whether this marks a shift in the housing market's trend or simply a seasonal fluctuation. However, the immediate implications are clear: the continued decline in new home construction will exacerbate the existing housing crisis, affecting a broad swath of the population reliant on affordable housing options.