House prices outpace incomes in the central region

House prices in the central region have risen faster than household incomes since 2018, KVF reported, citing Landsbankin.

Real house prices in the region rose 6% in the first half of this year compared with the previous year, according to Landsbankin. The real price is the ordinary house price adjusted for inflation.

Over the past 10 years, incomes have not increased as much as house prices. Landsbankin said the main reason for rising prices is low supply relative to high demand, with too few homes being built.