Iceland: Plan to Build 35,000 Apartments in 10 Years

In response to the housing shortage, a working group established by Prime Minister Katrin Jakobsdóttir proposes to build 35,000 apartments over the next ten years, RUV Iceland reports. The group wants state and local governments to draw an agreement and secure a long-term plan.

The working group proposes that at least 4,000 apartments per year be built in Iceland over the next five years and for another five years after that, 3,000  per year. Thus, 35,000 housing units would be built over the next ten years.

By comparison, much less was constructed between 2011 and 2020. In 2011, only 565 apartments were built, while 2020 saw the highest number of new apartments come on the market - 3,816. This year, about 2800 houses will enter the market. 

The latest report from the Department of Housing and Welfare confirms the sorry state of Iceland's housing market.