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Norway, the downside of growth

Oslo is the fastest growing major city of Europe. The city grows 2% each year and has grown 17% in the last 15 years.
The urbanisation process is relatively new in Norway, were living with nature is in the genes of the people.  But work has brought people to the city, and the city has to provide houses for those who want to move in. The unemployment rate in Norway is very low. Although some people fear a collapsing  bubble after the oil, most people don’t worry too much about the economy, Norway has oil and huge reserves from that. Oslo is ranked number one in terms of quality of life, among European large cities in the European Cities of the future 2012 report by fDi magazine. It is also the second most expensive city in the world, in terms of living expenses (after Tokio).

But there is definitely a downside to this positive story. Building production cannot keep up with the population growth. Therefor the prizes of land and houses are continuously rising. Developers, contractors and also architects make good business in this context. But to build houses that people can afford the tendency is to build smaller and denser. Of course the municipality is trying to regulate this, but the fact is that a family apartment is almost unaffordable for a regular family. One can imagine that lower income families are all pushed to the outer neighbourhoods of the city, whereas the new harbour front developments that form the main part of the city’s building land become inhabited by higher incomes and smaller households.

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