Housing initiative

The goal of residential development in the city's established neighborhoods is to work quickly and effectively to create detailed plans and allocate buildable residential lots to meet housing market needs. The development emphasizes respecting the character and conditions of each location.
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Background
The Mayor launched a task force on housing issues in early 2024. One focus is exploring development possibilities on small and medium-sized lots in suburbs. Grafarvogur was examined first, with changes aimed at giving more people the opportunity to live in this established neighborhood.
Reykjavík City has worked systematically in recent years to monitor development to meet housing market needs based on housing plans, Reykjavík Municipal Plan 2040 goals, and neighborhood planning for established areas.
Comprehensive neighborhood approach
The City is examining each neighborhood comprehensively so work is starting in one area rather than scattered locations. Grafarvogur will gain nearly 350 new homes, with this development specifically emphasizing that all new construction integrates seamlessly with the existing environment. Small apartment buildings, single-family houses, and semi-detached houses will be added throughout the neighborhood, respecting local character.
Breiðholt will likely be examined next, considering proposals from the recently approved neighborhood plan. Areas with available school capacity are prioritized.

Better use of infrastructure
Development in established neighborhoods aims to strengthen communities and use existing infrastructure, such as roads, utilities, and commercial centers. This development supports preschools and primary schools with room for more students.
Affordable and diverse
The focus is on affordable, environmentally friendly development with diverse housing options. This meets the needs of different groups based on family structure and age. Plans include allocating land for smaller, non-profit housing associations and smaller developers. This creates more sustainable neighborhoods and supports the municipal plan's goals for sustainable urban development.
Green areas
Development will support biodiversity and green areas, both within and outside construction zones. Emphasis is on eco-friendly design and construction methods to minimize carbon footprint, using blue-green stormwater solutions and diverse vegetation.

What happens next?
Proposed development sites will go through the standard detailed planning process. Residents can then offer suggestions and comments.
Draft proposals for municipal planamendments are now available for public review, and the documents can be accessed through the Planning Agency portal. Formal comments, suggestions and feedback can be submitted there through April 10.