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Many struggle with rent

15.10.2021 - 10:36
Mynd með færslu
 Mynd: Vilhjálmur Þór Guðmundsson - RÚV
Around ten percent of renters in Iceland spend more than 70 percent of their total net income on rent, and around a quarter allocate more than half their income to rent, according to the latest monthly report from the housing and infrastructure agency’s economics department, published yesterday.

Ólafur Sindri Helgason, the senior economist at the housing and infrastructure agency, said in interview with Morgunblaðið that the average proportion of people's wages spent on home rent increased in 2020 from 40 percent to 44, and stands at 45 percent today. Around 32,000 households in Iceland rent their homes, according to Ólafur. 

The report also notes that the price of rental homes on contracts notarised in the capital region continues to rise slightly, and that the rise has been much sharper in communities just outside the capital: 2.3 percent in one year in the city and 7.2 percent nearby. 

There is a large swing in areas outside the capital, though, because of the smaller number of contracts being notarised. There was a large drop in prices in the same area at the same time last year. Elsewhere in Iceland, average rental costs dropped two percent between months. 

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