Needs-Tested and Market-Based Social Rented Housing: The Extreme Case of Norway?

Abstract

In this article we introduce an ideal type we call “needs-tested and market-based social rented housing (SRH)” which is fleshed out and compared to the complex empirical reality of the Norwegian SRH sector. The ideal type may arguably serve as a useful theoretical point of reference both in case studies and in comparative research, and is inspired by the literature on housing regimes, pro-market housing policies, as well as the empirical example of Norwegian SRH. In our contribution to the special issue, we discuss how and to what degree the Norwegian case deviates from the defining features and internal logic of the ideal type, drawing on comprehensive empirical evidence. We also ponder to what extent the policy challenges plausibly associated with the ideal type are evident in Norwegian SRH. In our conclusion, we argue that, as expected, Norwegian SRH in urban areas matches well with the ideal type since it is highly needs-tested and directed at the most disadvantaged households for a limited period. Nonetheless, geographical variation, urban-rural differences, third-generation rent controls, institutional divergence, and discretionary exceptions mean that there is a far from perfect fit between empirical reality and theoretical ideal type. We also argue that many of the policy challenges plausibly associated with the ideal type, such as NIMBYism, housing shortages and complex needs assessments, are present in Norwegian SRH. Increased provision of social housing could probably mitigate at least some of the challenges discussed in the paper, or so we argue in our concluding reflections. However, significant state investment would require a major policy shift from the Norwegian government – a government that, despite access to black gold from the North Sea, has been reluctant to spend heavily in the SRH sector.