Affordable housing for young people and first-time buyers
Description of the action and objectives
Green Deal action
New solutions and ideas in housing issues are important to encourage innovation and development in apartment construction. With the project, Reykjavík City wants ideas to increase the supply of affordable housing for young people and first-time buyers. The plots in question are in Úlfarsárdalur, Kjalarnes, Gufunes, Elliðaárvogur (Bryggjuhverfi), by the The College of Navigation, at the plot of the old Meteorological Office (Veðurstofureitur), and in Skerjafjörður
Implementation period
Planned completion in the second half of 2025
Status report on July 1, 2025
Reykjavík City began a targeted initiative in 2018 to offer affordable housing for youth and first-time buyers. The project, which is part of the City's Housing Plan, ensures that housing price increases do not exceed the index and that profits are returned to buyers. Nine partners were selected through an open process, and about 250 residential units have already been delivered out of the 700 planned.
Examples of projects:
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Þorpið in Gufunes (137 residential units)
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Vaxtarhús Affordable Housing at Sjómannaskólareitur (60 residential units)
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Urðarsel in Úlfarsárdalur (52 residential units)
HOOS in Skerjafjörður, Investis in Kjalarnes, Variat at Veðurstofuhæð and Bryggjuhverfi III are in the planning stages.
The goal is to create diverse solutions with an emphasis on simplicity, sustainability, and real access for youth to secure housing.
In March 2025, Reykjavík City and the labor movement signed an agreement on actions to increase housing supply and accelerate development, specifically addressing affordable housing for youth.
Older status reports
| Timeline | Progress description |
| July 2024 | Construction is underway on housing for youth and first-time buyers in Gufunes and Úlfarsárdalur. Preliminary design drawings have started coming in for Vatnsholt. Archaeological surveys are ongoing in connection with the Kjalarnes project, and uncertainty continues regarding development in Skerjafjörður, as the controversial relocation of Reykjavík Airport has affected the project's progress. |
| January 2024 | Affordable housing developments are in progress in Gufunes, Úlfarsárdalur, and on lot G in Bryggjuhverfi. Construction is expected to start soon at Sjómannaskóli lot. |
| July 2023 |
Construction is underway in three of nine areas. Assignments have been made in Gufunes, Úlfarsárdalur, and Vatnsholt. The next lot assignment within the project is anticipated in Bryggjuhverfi in 2024. Skerjafjörður has been paused, and future plans remain uncertain. Various delays have occurred in individual projects, such as due to ground reinforcement and archaeological research. |
| January 2023 | Construction at Þorpið in Gufunes is nearing completion. Construction work is underway at Hoffell in Gufunes and Urðarsel in Úlfarsárdalur. Plot allocation has taken place at Vatnsholt, where construction is expected to start soon. The next plot allocation will likely occur in Skerjafjörður, along with two plots in Bryggjuhverfi becoming ready for construction by the end of the year. Planning work for Veðurstofuhæð is projected to begin in 2023. |
| July 2022 | Construction is underway in three of nine areas. Plots have been allocated in Gufunes, Úlfarsárdalur, Vatnsholt, and Bryggjuhverfi. The next allocation of land plots is expected to occur in the Bryggjuhverfi district this year, 2022. |
Connection of action to Reykjavík City's policies:
Reykjavík City departments:
Action
Economic objectives
- 1. Responsible financial management | Green Deal The City's Financial Policy is based on sustainability, stability, predictability, and transparency.
- 2. Dense and mixed development | Green Deal Denser, mixed housing with neighborhood sustainability at its core.
- 3. New employment opportunities of the future | Green Deal Future job opportunities will be based on knowledge, innovation, and sustainability.
- 4. A favorable environment for business and innovation | Green Deal The goals of Reykjavík City in the development of new industrial areas for businesses until 2030 are efficient land use, diverse economy, and industrial zones for companies of all types and sizes.