The purpose of this report is to describe development features of the housing market in remote municipalities in Denmark throughout recent decades, mainly since 1982. Remote municipalities consist of 16 municipalities out of a total number of 98 Danish municipalities. The report finds that from 1996 to 2009 single family home prices in remote municipalities declined relatively, i.e. when compared to the house price development in more urbanised municipalities. Moreover, the number of vacant homes in remote municipalities increased strongly from 1982 to 2010, both in absolute numbers and compared to the other Danish municipalities. The development in general economic conditions, as measured by the aggregate development in gross value added in remote municipalities, showed some correlation with the house prices development, the building activity development, and the vacant home development in remote municipalities. However, the house price development and the vacant home development in remote municipalities were found mainly to be a reflection of the population decline in remote municipalities during recent decades. The biggest challenge to the housing market in remote municipalities seems to be the relatively high percentage of vacant homes. Thus, in 2010, the average vacant home percentage in the 16 remote municipalities was 12.7 percent (minimum 6.2 percent, maximum 30.3 percent). In comparison, the vacant home percentage in 2010 in Denmark as a whole was 5.3 percent.
Summary of CLF Report 15/2012
