Housing prices in Reykjavik up 21% in 1 year
Housing prices in Reykjavik keep on rising. The house price index rose 2.7% in the last month, 7.1% in the last three months, 12.3% in the last 6 months and in total of 20.9% in the last year.
This is a hot topic in Icelandic society. There is a shortage of housing and many young people have troubles making ends meet due to high rent.
Companies like the Blue Lagoon and IKEA Iceland are working on helping their staff out by building housing for them.
According to a new diagnoses of The Housing Financing Fund there is a shortage of 4,600 apartments, and 9,000 new apartments must be built in the next three years to meet the demand of the market.
The reason for the shortage is that there haven’t been built enough apartments to meet the growing population of Iceland. In addition to that 1,600 apartments are rented out to tourists.