35 thousand apartments in ten years

Yesterday, an agreement was signed between the government and the Association of Icelandic Municipalities regarding actions and reforms in the housing market for the next ten years. The goal is clear: to achieve balance in the housing market by using the tools presented in the agreement.

Grim Lottery

In recent years, we have experienced significant fluctuations in the housing market, both in terms of the supply of plots and housing, leading to price variations. These fluctuations create circumstances that mean that the generations entering the market as first-time buyers find themselves part of a kind of grim lottery where few succeed and most begin their participation with heavy burdens. Due to this situation, there is a strong emphasis on housing issues in the government coalition agreement.

The first steps taken were to consolidate under one ministry, a new Ministry of Infrastructure, the sectors of housing, planning, local governments, transport, and construction. This action is fundamental to being able to analyze the situation and propose targeted and effective measures to create balance in this significant market.

Landmark Agreement

The agreement signed yesterday marks a milestone. It includes that the state and municipalities share the same vision, both regarding the problem and, not least, the solutions. The goal is that over the next ten years, 35 thousand new apartments will be built, four thousand apartments in the first five years and three thousand in the following five years. It is equally important that a third of these 35 thousand apartments will be priced affordably, and five percent of all new housing will be social housing solutions to meet the specific needs of those who are at a disadvantage. There will also be a special initiative to eliminate waiting lists for specific housing solutions for disabled people.

Everyone Should Have a Chance

There is no one solution to the problems facing the housing market; the solutions are many. In the landmark agreement signed yesterday, important threads are woven together to make the housing market more stable. It is my sincere belief that the cooperation achieved between the state and municipalities paves the way for a healthier housing market where everyone has opportunities and no one is left behind on the street.

Sigurður Ingi Jóhannsson, Minister of Infrastructure and Chairman of the Progress Party.

The article first appeared on mbl.is on 13 July 2022.