The National Bank of Denmark published an update on Danish households’ housing debt, showing total housing debt was 3.7% higher at the end of October than in the same month a year earlier, with growth increasing during 2025 but remaining moderate. Both bank lending and mortgage lending contributed to the rise, following a period in which Danes reduced housing debt, partly driven by mortgage conversions prompted by higher interest rates. Nationwide, annual housing debt growth is approaching the level seen before 2022, but with significant variation across municipalities, with the Capital Region, particularly Copenhagen and Frederiksberg, seeing higher-than-average increases.
National Bank of Denmark 2025-11-27
National Bank of Denmark reports Danish housing debt up 3.7% year on year with faster growth in Copenhagen area
The National Bank of Denmark reported a 3.7% increase in Danish households' housing debt by the end of October compared to the previous year, with growth accelerating in 2025 but remaining moderate. Both bank and mortgage lending contributed to this rise, reversing a trend of debt reduction driven by mortgage conversions due to higher interest rates. Notably, the Capital Region, including Copenhagen and Frederiksberg, saw above-average increases.