Considering the current drop in price of rental apartments in Iceland’s capital region, there is not much difference anymore in the price for rental apartments at Félagsbústadir, Reykjavík Social Housing, and the price of apartments on the general rental market, listed on Leigulistinn rental agency.
Currently, the smaller apartments are less expensive at Félagsbústadir, while the larger apartments have become less expensive on Leigulistinn, Fréttabladid reports.
“If the state of the market changes so that the prices at Félagsbústadir are skewed, then there is full reason to review the prerequisites for rental prices, at least for the larger apartments,” said Svandís Svavarsdóttir, Reykjavík City councilperson for the Left-Greens.
The rental price at Félagsbústadir is indexed and increases with growing inflation. On the other hand, according to Gudlaugur Thorsteinsson at Leigulistinn, the current economic situation calls for a drop in price on the general rental market, which has decreased by 15 to 20 percent in recent months.
“We have been calling for information so that we can estimate what will happen if inflation remains very high,” said Jórunn Frímannsdóttir, head of Reykjavík City’s welfare division.
Almost 890 individuals are on a waiting list for an apartment at Félagsbústadir, but their number has been decreasing lately. “If the general market is going down, then that is a good thing,” said managing director of Félagsbústadir Sigurdur Fridriksson.
Fridriksson said the safety that comes with renting a social apartment, which the general rental market is lacking, is important to many of those who apply for an apartment at Félagsbústadir.
Since 2001, when accommodation prices began rising, more people have applied for apartments at Félagsbústadir. Now Fridriksson expects that development to change.
Click here to read more about the rental market in Iceland.