New Home, First Time Buyer | Relying on parental help: – It is a complete crisis

– For me, who has parents abroad, this was a distant dream for me, says Dayana Erazo (26 years old) to Netavisen.

Erazo and his girlfriend Mats Petersen Andersen (27) recently bought their first apartment together in Kalpäkken in Oslo.

The apartment was sold for 3.9 million and exceeded the appraisal by 400 thousand. The announcement described it as a “modernization project.”

It needed to renovate the floor and walls, which also resulted in the couple taking out an additional loan.

Erazo told Nettavisen that they would not have been able to achieve their dream of ownership without the Andersen family.

– His parents can act as guarantors. We wouldn't have been able to buy in the first place without the help, Erazo told Netavicin.

The head of Sem og Johnsen Eiendomsmegling, Christopher Askjaer, is concerned about the future of the youth housing market.

– For those who will buy for the first time, it will become more difficult in the future, Asker told Nettavisen.

New homes have become expensive to build, expensive to purchase, and help drive up prices in the housing market.

New homes are struggling on the market

In March, new home sales fell by 14 percent compared to the previous year, according to the latest figures from the Polygproducers Association.

– We are much lower than where the housing and startup market usually is, although this is an increase from last year, says Boligprodukterene Managing Director Lars Jakob Heim.

In the first quarter, 750 detached houses, 827 detached houses and 1,801 apartments were sold. Detached home sales were down 23 percent from sales in the first quarter of last year, condos were down 6 percent, while detached home sales were up 38 percent.

The housing market is not healthy. It's still a demanding market, Hem says, and historically low housing construction has serious consequences affecting many.

Asker explains that nothing is being built now because no new homes are being sold, plus it is very expensive to build more.

The lack of new housing on the market means that outside prices far exceed the assessed value in most places in the country.

– Last year, only 65 percent of new homes were sold. It's a complete crisis, Askeger tells Netafsen.

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Be a slave to debt if you buy on your own

Erazo and Andersen decided in December that they should start actively saving so they could buy in the summer of 2024.

Andersen lived at home with his parents, while Erazo rented in Oslo. But she was allowed to move in with her father-in-law to save on rent.

– We had to allocate a large portion of the salary to savings. “It's so crazy that it takes so much,” Erazo tells NetVision.

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Erazo's parents live in Ecuador and therefore cannot be guarantors.

They both now work full-time at a nursery, with Erazo producing social media content and Andersen playing football.

-We would never have been able to buy all of them for ourselves. You must have a guarantor and a fairly high loan if you want to buy on your own. Then you sit there and pay. “You pretty much become a slave to debt,” Erazo tells Netafine.

– Have you thought about buying a new home?

– no. Erazo answers: We looked at something newer than what we bought, but it was much more expensive, so we couldn't afford it.

Concerned about cities

Askjer is worried about how it will play out in the long term. He believes that political measures should be taken to save cities.

– Politicians do not see the problems that await them. Plans need to be made so that young people can live in cities as well, so that there is a good mix of people. I don't see any signs of that, Asker tells Netavisen.

Read also: The housing trap for parents: you could lose hundreds of thousands of kroner

He fears that rising prices will prevent young people from entering the housing market in cities, and that only older people will be able to afford to live there.

The wave of elderly people comes like a bullet because young people cannot buy in the cities. It will be a city with mature people who only sell to each other, Asker tells Netafsen.