Residents oppose 260-home worker housing plan in Hafnarfjörður
Tuesday 29th September 2026 on 10:45 in
Iceland
About 1,900 people have signed a petition opposing plans for 260 homes near the Vellir residential area in Hafnarfjörður, mbl.is reports. The proposed development would cover about 10 hectares beside Krýsuvíkurvegur and Hvaleyrarvatnsvegur.
Hafnarfjörður signed an agreement with a developer last week for the construction of 50 buildings containing 100 homes in the first phase, followed by 80 buildings with 160 homes. The accommodation is intended as a temporary housing option for people working on projects.
Stólpi will build the homes for its sister company, Styrkás fasteignir ehf. The agreement is subject to approval by the town council.
Town council chair Orri Björnsson said in a municipal statement that people doing temporary work in Iceland should have access to safe, suitable housing. He said some workers had lived in unacceptable accommodation not built for residential use, which could pose a danger. The project, he said, would quickly increase the supply of safe and affordable housing and allow workers to register their legal residence in Hafnarfjörður.
Residents have criticised how the plans were advanced. Elín Sigríður Óladóttir told Morgunblaðið that they were unhappy the proposal had been made “under cover of night” and without being presented to residents. She said the situation reminded her of plans for Carbfix’s Coda Terminal carbon disposal facility in Hafnarfjörður, which were abandoned after, among other things, protests from residents.
Elín Sigríður said the development would create a kind of village for 260 itinerant workers beside the Hamranes, Vellir and Skarðshlíð residential districts. She stressed that residents were not protesting against the workers themselves.
She said the project appeared to have two aims: meeting housing needs for temporary project workers and preventing people from living in unapproved accommodation. She also argued that comparable countries tend to avoid building uniform neighbourhoods because they can sometimes lead to social problems. In her view, the proposed development lacks services and is far from local amenities, and could create various problems.