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.
