Housing construction in Iceland slightly outpaced population-driven demand last year.
As reported by RÚV, the housing deficit was consequently reduced in the capital region, according to a new report from the Icelandic Housing and Construction Authority.
- 3,372 new apartments completed in Iceland last year, below mid-range forecasts but above minimum estimates
- Population increased by 5,470, or 5,080 including Grindavík, both below projected levels
- Housing deficit reduced by around 500 units in the capital area and 120 in neighbouring municipalities
Construction exceeds forecasts
A total of 3,372 new apartments were completed nationwide—above the lowest municipal forecasts but around 15% below the projected median of 4,000.
Meanwhile, population growth reached 5,470, significantly lower than expected and nearly 39% below mid-range projections.
When accounting for Grindavík, the increase drops further to 5,080, below even the most conservative estimates.
As a result, the housing shortfall decreased by approximately 500 apartments in the capital area and 120 in surrounding municipalities.
Most new housing was concentrated in Reykjavík and Hafnarfjörður. While development in Reykjavík and Mosfellsbær fell short of minimum forecasts, construction in Hafnarfjörður and Kópavogur met demand, and exceeded it in Garðabær.
Despite these gains, land supply remained uneven. While sufficient plots were available in Reykjavík and Garðabær, shortages persisted in Kópavogur, Hafnarfjörður, and Mosfellsbær.
This imbalance continues to affect the pace and distribution of housing development across the region.
Source: icelandreview.com
