Housing policy and programme

It is the policy of the CoR that all citizens have safe and affordable housing, whether people need support with their housing issues or not. The CoR's housing policy covers the housing needs of all city dwellers, regardless of property form, size or quality of housing.

Uppfærð húsnæðisáætlun Reykjavíkurborgar var lögð fyrir borgarráð 10. nóvember 2022

Húsnæðisáætlun Reykjavíkurborgar er sett fram til að mæta áskorunum á húsnæðismarkaðnum og markmiðum Reykjavíkurborgar í húsnæðismálum. Hún byggir á stefnumörkun Reykjavíkurborgar á sviði húsnæðismála og á lagaumgjörð og greiningum á stöðu á húsnæðismarkaðinum. Í henni eru skilgreind helstu byggingarsvæði í Reykjavík og hvernig uppbyggingu íbúðahúsnæði í þágu allra borgarbúa verður háttað í samvinnu við verkalýðshreyfinguna, húsnæðissamvinnufélög, samtök eldri borgara, stúdenta og einkaaðila.

Housing policy

You can find various information on the CoR's housing policy and housing programme on this website. On the Green Plan website you can also follow the construction of apartments in Reykjavík under the housing programme. The construction of a residential building in Reykjavík was submitted to a briefing convened by the Mayor of Reykjavík on October 29, 2021.


The CoR's policy in the field of housing can be found in the approved policy documents and the approved city and city councils.

Key policy documents that address housing issues include the Reykjavik Housing Strategy, Co-operation Commitment to the Formation of the Majority of the City Council 2018-2022, the Reykjavik Master Plan 2010-2030, and the CoR's Contractual Objectives in New Structural Areas.

The Strategy for Housing can also be found in the following:

  • The Green Plan is about economically, socially and environmentally sustainable CoR, and about housing construction, building densification and improving the sustainability of residential areas.
  • Proposals for a new annex to the Master Plan were submitted to the Planning and Transportation Council and the City Council in October 2020 and include a review of the policy on residential and mixed construction and an extension of the planning period to 2040.
  • The City Line project is one of the main pillars of the recently adopted Metropolitan Municipal Transportation Agreement and a government initiative that anticipates major transport efforts to further connect the metropolitan area over the next 15 years.
  • A partnership agreement concluded with the formation of the majority of the CoR's mayors in 2018-2022 provides, inter alia, for projects in the field of housing.

Four Categories of Housing

For simplicity, the CoR's objectives in the field of housing can be summarised in four categories:

Housing for all:

  • Housing
    supply will be in line with needs on a case-by-case basis and there will be an increase in the supply of smaller dwellings over the next few years, aside from the form of ownership.
  • The diversification of the supply of house types and living options for all social groups, and the creation of any type of living space accommodated within a residential, central area where residential or other mixed construction is expected. 
  • The CoR's housing aid will be tied to the personal situation of the population.
  • The housing needs of young people and those on their feet for the first time in the housing market, as well as those who don't want to or can't put a lot of money into their own housing, will be looked at separately.  
  • The aim is to create the conditions for the construction of at least 1,000 new dwellings per year on average. As a result, some 250 housing units are expected to be built on behalf of non-profit housing associations. 

Increase in the number of rental and residential rights apartments:

  • Increase in the number of rental and residential rights owned by housing cooperatives, associations and/or private entities, especially in central areas easily served by public transport. 
  • About 25% of new housing units will be managed by non-profit housing associations. 
  • 2,500-3,000 new rental and residential rights apartments will be built over the next few years in collaboration with rental and residential rights associations.
  • Community residences will be lap in new infrastructure projects.

Strong and sustainable neighbourhoods:

  • Construction of housing suitable for lower-income groups, especially in areas easily served by good public transport and/or adjacent to large employment centres and a wide range of services. 
  • Creating strong neighborhoods to cover basic services, a wide range of shopping and services, sports and recreational activities, and a wide range of human activities. 
  • That the context of housing costs and the costs of transport, in the formulation of housing policies and the formulation of housing programmes, should always be considered.
  • Eco-friendly and sustainable design solutions will always be a guiding principle when shaping a new residential building.

Good land use and densification along development axes:

  • Land and infrastructure of the city will be used optimally and that the start-up costs of the infrastructure for the construction areas will be met from the funds available from the construction.
  • Construction Condensation - 90% of all new apartments in Reykjavik until 2030 rise within the current urban limits. Three areas will play a key role in the development of Reykjavik over the next few decades: Waterfront, Elliðaárvogur and City Centre/Old Harbour. 
  • Condensation builds and new apartments will be built at the development axes connecting the city centre, including with City Line, to the condensation areas to the east and to the south taking into account the expected construction in the Watershed and municipalities in the capital.