Demand for housing remains higher than available supply, indicating a continuing need to build more homes, RÚV reports.
Housing shortages pushed sales in July down a fifth from the same period last year. Now housing costs are very high due to inflation, currently he is 9.9%.
“The situation is like that, and it seems that there will continue to be more buyers than sellers,” said Associate Professor Mar Wolfgang Mixa of the University of Iceland.
Iceland’s population has grown significantly over the past decade, putting further pressure on the housing market. As of July, 381,000 people live in Iceland, 66,000 more than in 2007. The Icelandic Statistics Office expects this increase to continue, with Iceland expected to add 40,000 more over the next four years, bringing the total to 420,000.
“The growing supply of building land is an illusion. Of course, it is a bit old-fashioned, but it is still true that there is more supply and more diversity in that supply,” Ma said.
There is currently some construction underway, but the impact on the housing market is unknown.
“Somehow [these constructions are] Given the growth and demand of the market, it is still not enough,” says Már.
