News - 04.02.2026
A well-attended meeting on housing issues
At a well-attended meeting held by VR and the Confederation of Icelandic Industries yesterday, Tuesday 3 February 2026, there was a call for the authorities to present a clear vision on housing issues and to take on a more extensive role in this policy area. Housing issues are one of the largest collective bargaining concerns of working people, and VR has placed strong emphasis on the housing security of wage earners. There has been little consensus on the involvement of the state and municipalities in housing development, but the meeting agreed that there is a strong willingness for cooperation and collaboration to simplify and speed up the process of residential construction. In an address by the Minister of Social Affairs and Housing, Ragnar Þór Ingólfsson, the government’s willingness to examine how municipalities can be accommodated when it comes to infrastructure development was also expressed.
Halla Gunnarsdóttir, Leader of VR, hopes that this clear harmony between the country’s largest trade union and the largest employers’ confederation will reach the ears of the authorities and that they will heed the call to take on greater oversight and even overall management of housing issues. “Housing is the largest driver of inflation. It is necessary to lift housing policy out of the framework of ad hoc projects and ensure a long-term vision with the aim that everyone can put a roof over their heads on affordable terms.”
From words to action
The meeting, entitled Unity on improvements in housing issues (Samstaða um úrbætur í húsnæðismálum), was attended by representatives from nearly all sides of housing development, as well as wage earners and the Confederation of Icelandic Industries, ranging from contractors and architects to municipalities, real estate companies, and the Housing and Construction Authority. The situation on the housing market and future prospects were discussed, and answers were sought to the question of how to move from words to action. Sigurður Hannesson, CEO of SI, opened the meeting, and Halla Gunnarsdóttir discussed housing issues from the perspective of wage earners. Kristín Amalía Líndal, economist at HMS, addressed the state of housing issues at the beginning of the year, and Ingólfur Bender, Chief Economist of SI, reviewed municipalities’ fee collection authorizations in connection with housing development. Karl Þráinsson, CEO of Framkvæmdafélagið Arnarhvoll, shared practical experiences, and Sigurður Stefánsson, CEO of Aflvaki development company, discussed the impact of an ageing population on housing needs.
In a panel discussion, lively debates took place with the participation of attendees. Saga Guðmundsdóttir, Chief Economist of the Icelandic Association of Local Authorities, Gylfi Gíslason, CEO of JÁVERK, Björn Traustason, CEO of Bjarg Housing Association, and Arnhildur Pálmadóttir, architect at s.ap arkitektar, took part in the panel alongside Halla and Sigurður.
Here you can watch the meeting in its entirety – in Icelandic only.
