3000 apartments per year

The majority in Reykjavík city has managed to achieve an extraordinary success. It has, in recent years, repeatedly broken Icelandic records in property price increases, and this has been noticed. When the return on investment that individuals make to have a roof over their head is higher than what is typically seen in foreign securities transactions, something must be done. Detached houses are hardly found on the market for under 100 million, individual housing is generally almost unobtainable, and small apartments in multi-family buildings are starting to cost the same as detached houses in established neighbourhoods did 5-10 years ago. Older people are largely supporting their grown-up children in property purchases because the deposit for an apartment can amount to several million. In this way, their pension funds, which are tied up in housing, are used to buy apartments at inflated prices. Everyone loses out on this. The policy of the majority, led by the Social Democratic Alliance, therefore hits those with lower incomes and younger people the hardest, as well as older people.

The exodus from the city

This sky-high housing price and lack of diverse properties entering the market have resulted in families with children who need to upsize fleeing the capital. Statistics from the Statistics Iceland show that people are increasingly moving to areas where property prices are lower and the supply of individual housing is greater. Reykjanesbær, Akranes, Hveragerði, and Árborg welcome those whom the city has not taken into account. For example, there will be an increase of 1,800 residents in Árborg this year. This is because Reykjavík has not fulfilled its duties when it comes to land supply and ensuring various options are available. It is necessary to think ahead and consider more than just urban densification.

What Framsókn plans to do

What we in Framsókn plan to do is to ensure there is a sufficient supply of land at all times for different types of housing. It is necessary to ensure a sufficient amount of plots for multi-family buildings for contractors, leasing companies, and for social housing. There is also a need to allocate plots for individual housing, detached, terraced, and semi-detached houses. We want to plan plots so that it is possible to build up to 3,000 apartments. There are various obligations that come with being a capital city. Reykjavík needs to take responsibility for being a leader in land supply. It is natural because here in the city is the most buildable land. People need to have the option to live as they wish. This is what we in Framsókn intend to ensure in the next electoral term if we get the mandate.

Einar Þorsteinsson

The author is the leader of Framsókn in Reykjavík in the upcoming municipal elections. 

The article was first published on visir.is on 10 May 2022.