Ari Edwald says Reykjavík housing costs are driving residents away

Reykjavík’s housing costs are becoming unaffordable for residents, Centre Party city councillor Ari Edwald says, blaming the city’s growth limits and high-density policy. The comments were reported by mbl.is.

Edwald said infrastructure fees alone amount to 15 million for a 100-square-metre apartment. Fees, including financing costs during construction, now make up 40% of the price of an apartment costing one million per square metre, he said.

He said the charges include building-rights and infrastructure fees, adding that taxes remain taxes even when given new names. In response, people are moving elsewhere, leaving behind groups who need assistance, he said.

Edwald called the policy unsustainable and said the city should make more land available for construction so that cheaper housing can be built to meet people’s needs.