Reykjavík

The housing market in Reykjavík is characterized by a significant shortage of housing units, leading to high prices and rents. The total number of housing units in Iceland is approximately 145,000, with about 85% of the population being owner-occupiers and 15% renters[2].

Recent data indicates a decline in housing market activity, with an increase in unsold properties. In August 2023, there were 1,605 used flats listed for sale in Greater Reykjavík, almost twice as many as the previous year, and 1,048 newly constructed houses, nearly seven times as many as the previous year[2].

The median price per square meter to rent and buy an apartment is not provided in the available sources. However, the housing index in Iceland has increased to 782.28 points in November 2024, indicating rising housing prices[5].

Public, social, and cooperative housing play a role in addressing the housing shortage. The government has proposed building 35,000 apartments over the next ten years, with at least 4,000 units annually in the first five years[2]. However, the current construction rate is below this target, with only 690 apartments started in 2023 and 675 in the first half of 2024[1].

The specific share of public, social, and cooperative housing in the market is not provided in the available sources. However, it is noted that these sectors are crucial in providing affordable housing options, especially for vulnerable populations such as students and disabled individuals[2][3].

In Reykjavík, housing cooperatives play a significant role in providing affordable housing options. The city aims to promote cooperative housing through various activities and policy regulations. Key goals include increasing the availability of diverse housing options and promoting social mixing within neighborhoods. The city collaborates with non-profit rental companies and cooperative building associations to develop projects that include rental units, student housing, and housing for seniors and people with disabilities[1].

Reykjavík City's Housing Policy and Municipal Plan 2010-2030 emphasize the development of a rental market and aim for about 25% of dwellings in each district to be rental units, including cooperative housing. The city also focuses on affordable housing for first-time buyers and has launched initiatives such as the "Green Housing of the Future" competition to promote sustainable and carbon-neutral housing developments[2].

Specific cooperative projects include partnerships with organizations like Búseti Co-Op and Bjarg Housing Foundation, which are involved in developing affordable housing options. The city also allocates 5% of new developments to its housing company, Félagsbústaðir, for social housing through value-capture contracts[2][3]. These efforts aim to create a more inclusive and sustainable housing environment in Reykjavík.

The current city administration of Reykjavík addresses the topic of housing through several initiatives aimed at creating more affordable and sustainable housing options. Key targets include:

• Affordable Housing: The city aims to allocate plots for 400 homes to support affordable housing initiatives for young adults and first-time buyers, with a goal of 30% of new developments being devoted to affordable housing and an additional 5% to social housing[1][2][5].
• Housing Diversity: The goal is to have about 25% of dwellings in each district as rental units, student housing, housing in building cooperatives, social housing rental units, housing for seniors, and housing for people with disabilities[4].
• Sustainable Housing: The city promotes green housing initiatives through projects like the SPARCS Green Housing project, which aims to combat carbon emissions from buildings and promote green practices in construction and design[3].

Concrete activities and programs include:

• Housing Plan: Updated annually, it outlines main construction areas, plot allocation, financial participation, and cooperation with non-profit housing associations[1].
• Affordable Housing Project: Launched in 2018, it provides affordable housing for young people and first-time buyers, with conditions ensuring the benefits of land allocation reach buyers[2].
• SPARCS Green Housing Project: A sustainable urban development project focusing on reducing environmental footprint through green housing initiatives[3].