Thick black smoke covered the area, located some 50km west of Oslo, but there were no reports of casualties or people missing from the blaze, which hit a neighborhood of terraced housing, AFP reported.
More than 60 firefighters worked to put out the fire, while helicopters were deployed to douse the flames with water.
Police evacuated hundreds of people as the fire continued to burn and also spread to the surrounding forest.
It was not immediately known where or how the fire began.
MNA