Nearly five thousand apartments may be underused in Reykjavík, while the number could be just over one thousand in both Akureyri and Kópavogur.
This is among the findings of the October monthly report from the Housing and Construction Authority (HMS), published today.
According to the report, between 10,500 and 16,400 apartments across Iceland were not being used for permanent residence in October.
The rental market appears to be larger than previously estimated in earlier housing surveys conducted by the agency. A new study by HMS, in cooperation with the trade unions Efling, VR, and Eining-Iðja, indicates that about 28% of adults in Iceland live in rental housing — compared to 15% previously believed.
The report also notes that the number of rental contracts for new apartments has not increased in recent months, despite reports that some developers have withdrawn new properties from sale and placed them on the rental market. So far this year, about 8.5% of newly registered rental contracts have involved newly built apartments.
Over five thousand apartments for sale
According to real estate agents, the housing market currently favors buyers. The number of purchase agreements in the capital area has remained relatively stable, but the number of new apartments for sale has risen rapidly, while sales have been sluggish. The inventory period for apartments near the capital area is now the longest recorded since measurements began in 2018.
At the beginning of October, a total of 5,233 apartments were listed for sale nationwide, including 2,134 new units. Of these, about 3,200 apartments were for sale in the capital area, 1,100 in surrounding municipalities, and just over 900 in rural regions. The number of apartments on the market increased by about 140 in September.
Source: Mbl.is
