Increasingly strained property markets mean that affordable housing development is a key concern in Nordic housing policy. This is one of the key sectors in terms of its effect on quality of life and opportunities for Nordic youth. Housing markets in rural areas are characterised by a dichotomy – many rural areas face challenges in terms of empty houses, yet at the same time lack suitable housing to meet the needs of different societal groups. In some municipalities, young people are also affected by housing stock that is being vacated and repurposed as second homes or holiday lets for more resourceful societal groups. Rural Nordic housing markets are dominated by privately owned individual houses. However, studies indicate that various social groups, and especially young people, require more diversified (rental) housing opportunities.
Rural areas present a diverse picture in terms of housing market characteristics. In general, access to good, well-functioning and well-matched housing options that fit their needs are crucial for the prosperity and wellbeing of rural youth. At the same time, rural youth face challenges related to securing loans for house construction or renovations, or accessing existing housing stock. Some Nordic countries have set up subsidies for constructing new homes, especially for building rental housing options for specific social groups, e.g. young people or students. In other cases, social requirements, such as a baseline for minimum income, are imposed on lenders, which impacts young people’s opportunities to access adequate housing.
The municipalities play a key role in planning, regulating and facilitating rural housing development. They can influence the supply and demand of housing through area zoning, land use, infrastructure, services and various incentives. However, they also depend on national and commercial support and incentives to bridge financial gaps and stimulate rural housing markets that meet the needs of current and potential dwellers (Eliassen, Vestergård, Sigurjónsdóttir, Turunen, & Penje, 2020; Future Challenges of the Nordics, n.d.). Access to affordable housing is vital for attracting young people and resources to Nordic rural areas.
Recommendations:
Invest in and modernise the idea of shared housing models. Shared housing alternatives could include multi-purpose services for young people, as well as intergenerational exchanges. Rather than encouraging young people to build individual residential properties, rural municipalities should seek inspiration from urban areas in which shared housing is common.
Take into consideration the target group when building new houses, so that municipalities work to attract a specific demographic.
Create a public rural housing loan fund for young people to facilitate their entry into the housing market, and to invest in building new property or renovating old houses. It is important to give young people an advantage in the rural housing market.