The themes in the report are closely linked to the objectives of regional and rural policy. This year’s report takes a closer look at regional development within the following areas:

  • Demography and population trends
  • Housing and services
  • Quality of life
  • Innovation
  • Skills and employment
  • Land use and climate
  • Economic development

Refugees from Ukraine have contributed to high population growth

Population growth in Norway is high, and over the past three years the number of inhabitants in rural municipalities has increased. This is linked to the settlement of a large number of refugees from Ukraine. Without this immigration, the population in rural municipalities would have declined. High immigration has contributed to greater diversity among the population across the country. Ukrainians are now the largest immigrant group in rural municipalities, while immigrants from Poland remain the largest group in the most central municipalities.

Despite growth from immigration, there are still underlying demographic challenges, especially in rural areas. Several rural municipalities are experiencing persistent and significant population decline. There is still migration from less central to more central parts of the country. Relative to population size, the outflow is greatest from the three northernmost counties, with Finnmark being hardest hit. Population ageing is accelerating as the large post-war cohorts reach retirement age. The ageing wave affects rural areas the most, particularly Innlandet. At the same time, there has been a decline in birth rates among young adults and a significant increase in mothers’ age at childbirth. Ageing and low birth rates mean that more and more counties now have a birth deficit, making them dependent on in-migration to maintain or grow their populations.

The smallest municipalities face the greatest challenges in providing services

It is more difficult to maintain a broad and high-quality service offering in areas with scattered settlement and a small population base than in more central areas. This results in geographical inequalities in people’s access to services.

Education is becoming more centralized. The number of primary schools has fallen by 20 percent in the least central municipalities over the past ten years, particularly due to the closure of small schools. This has led to longer travel distances for pupils and lower satisfaction with school proximity. The number of upper secondary schools has also fallen by 10 percent nationally, with the steepest decline in counties such as Vestland, Møre og Romsdal, and Trøndelag.

Health and care services are also under pressure. Residents in small municipalities experience more unstable GP services, and in Finnmark more than 10 percent of the population lacked a regular GP at the end of 2024. Patients who have not had the same GP over time face higher mortality risk and risk of acute hospitalization. Short-term GP contracts are more common in small municipalities.

Analyses of multi-year data from the Municipality Barometer show a clear trend: municipalities with fewer inhabitants generally have fewer services and weaker outcomes. At the same time, there are large variations between municipalities of the same size. Satisfaction with municipal services also varies geographically. Residents of Rogaland, Oslo, and Innlandet are the most satisfied, while those in Nordland, Troms and Finnmark, and Møre og Romsdal are the least satisfied. Analyses indicate that it is not municipality size that explains differences in satisfaction, but rather individual factors such as the age and education level of residents.

Large geographical variations in the housing market

In rural municipalities, over 90 percent of homes are detached houses, semi-detached houses, or terraced houses, most of them built between 1945 and the 1980s. In the least central municipalities, only seven percent of today’s homes were built after 2010. Among counties, housing construction is highest in Akershus, where the increase has also been greatest.

The condition of housing varies between regions. Nordland and Innlandet stand out with poorer standards in homes sold, while Oslo and its surrounding areas stand out with higher standards. This is linked both to recent new construction and to housing price growth. The added value from upgrading homes depends on how well-functioning the local housing market is.

There are large geographical differences in house prices. In many rural municipalities, house prices are low, while construction costs are often the same as in more central municipalities. Some costs, such as transportation, may even be higher in less central areas.

The rental market is under greater pressure in cities and densely populated areas. This is related to tighter housing markets, higher house prices, and large student populations. The lack of suitable rental housing is exacerbated by the use of homes for short-term rentals via platforms such as Airbnb and Vrbo. The number of homes used for short-term rental increased in all five of Norway’s largest cities between 2016 and 2024, with Tromsø seeing the largest increase at 1000 percent.

Quality of life

Overall, living conditions in Norway are good, and several indicators of quality of life are moving in a positive direction. Life expectancy is high and has increased across the country. For both men and women, life expectancy is highest in the most central municipalities. For men, it is highest in Akershus (82.2 years) and lowest in Finnmark (79.1 years). For women, it is highest in Akershus, Vestland, and Møre og Romsdal (85.3 years) and lowest in Finnmark (82.9 years).

The share of people with persistently low income has decreased nationwide, across all counties and levels of centrality. The most central municipalities still have the highest share of persistent low income. Income inequality in Norway has also decreased, particularly in the most central municipalities. Residents also report high life satisfaction, with relatively small regional differences.

At the same time, the report highlights some clear geographical disparities. Finnmark stands out negatively on several indicators, with the lowest life expectancy, the highest share of daily smokers, and by far the highest male suicide rate. Northern Norway in general shows lower trust in politicians and government institutions compared with the rest of the country, and many residents in these areas believe that corruption exists within the state.

Residents of central municipalities have lower levels of overweight and obesity, engage more in strength training, and jog more often than those in less central areas. At the same time, people in rural areas have greater access to nearby outdoor areas and participate more often in traditional outdoor activities such as fishing, hunting, and berry picking. Trøndelag has the highest participation rate among children and young people in organized sports, but the lowest participation in outdoor activities. Agder has the highest share of children and young people involved in outdoor activities.

Geographical differences in skills and employment

Access to skills and labor varies across the country. The most central municipalities have a larger share of highly educated residents, while rural areas are more characterized by vocational skills. Although the overall education level in Norway has increased over time, many young adults in counties such as Østfold, Finnmark, and Vestfold still have only primary education.

Østfold has the highest share of residents receiving work assessment allowance and disability benefits, as well as the highest share of young people not in employment, education, or training. Østfold also has the lowest employment rate, both before and after adjusting for age distribution.

Labor force participation is high in rural areas. Employment among Ukrainian refugees is highest in rural municipalities, and among counties, highest in Troms and Finnmark. This suggests that in some areas it may be easier to find work for groups who otherwise struggle to enter the labor market. It may also reflect tight labor markets in these regions. Access to skilled labor is a challenge in several regions, particularly in Northern Norway, where the shortage of qualified labor is greatest relative to labor market size.

Most innovation in large and central municipalities

Innovation is more prevalent in large and central municipalities than in small rural ones. Rural municipalities rarely generate innovations on their own or carry out innovative procurements, but they often adopt and reuse innovations from others.

The degree of digitalization in the municipal sector is increasing across the country. Still, there are clear geographical differences, for instance in ICT security efforts. Southern Norway has more digitalization and inter-municipal digitalization cooperation than Northern Norway. Residents in more central areas are more satisfied with digitalization efforts by the state and municipalities than residents in less central areas.

Many rural municipalities have outdated municipal plans

Updated municipal plans are essential to ensure sustainable social and land-use development and to implement local, regional, and national policies. Today, there are large geographical differences in how up-to-date these plans are—municipalities in central areas are generally far ahead. Many rural municipalities in Norway have outdated municipal plans.

The climate in Norway is changing. Towards 2100, the country will experience warmer and wetter conditions, and society must adapt. Many buildings and roads are located in areas exposed to natural hazards. Innlandet is especially prone to flooding, while Trøndelag has the highest number of buildings and roads in areas with quick clay risk. Rural municipalities have the most roads and buildings in landslide-prone areas.

In 2024, for the first time, there were more electric cars than petrol-only cars on Norwegian roads. Oslo and nearby surrounding municipalities stand out in terms of electrification of the vehicle fleet. Vestland and Rogaland have the highest total greenhouse gas emissions, due to emission-intensive industries such as agriculture, manufacturing, oil, and gas.

Inequalities in value creation and business structure

There are significant geographical differences in value creation and business structures in Norway. The country’s economic hubs are Oslo, Viken, Rogaland, and Vestland. These four counties account for 63 percent of all national value creation. Projections of county-level value creation suggest that Oslo will grow the most toward 2060, followed by Akershus. The largest contribution to this growth will come from private services.

Less central municipalities tend to have a more one-sided business structure, often based on location-specific resources such as agriculture, fishing, aquaculture, and energy-intensive industries. While these provide a foundation for local value creation, they also make many communities vulnerable to changes in individual sectors. At the same time, figures show that rural areas have a higher share of employment in small and medium-sized enterprises. This underlines the importance of local businesses for jobs and economic activity. In recent years, rural municipalities have also seen some growth in the public sector, partly due to increased settlement of refugees and greater demand for public services.