Since 2010 the price of apartments in Norway has increased by 79%
(compared to 22% KPI). This naturally excludes many from the housing market. So how can this be fixed? Obos has been trying rent-to-own
solutions, but the big threshold for many is still the mandatory 15% needed in equity. The new startup Adress
is trying to fix this by providing up to 10% in co-ownership. In return, they require 25% of the gains when you sell, so you better not use much money to refurbish later on!
The interesting part about Adress is how they are structured. They are not a bank but an investment fund that exposes life and pension insurance funds for the housing market. It’s an interesting concept, but there is a reason we have the 15% equity rule. Without it, the housing market can run completely bananas. Ironically Adress could make the housing market more expensive to break into by making mortgages achievable with only 5% equity. It will be exciting to see if this concept triggers new regulatory changes in the years to come…