Iceland With Largest Housing Price Increase In Europe

A new report from Eurostat details both rent and housing price increases in Europe from the first quarter of 2010 to the third quarter of 2021. Perhaps unsurprising to many local readers, Iceland has come out on top.

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According to their findings, Iceland bears the distinction of having the largest increase in housing prices over this time frame: 150%. This is far above the Euro area average of about 35%, and surpasses the country with the second highest housing price increase, Estonia, by about 10%.

During this same period, rent in Iceland also increased, by 70%. Only Lithuania (110%) and Estonia again (over 160%) outpaced Iceland in rent increases during this time.

Rising costs in both housing prices and rent was the norm in Europe, with only two countries–Cyprus and Greece–showing a decrease in renting costs, and both of these countries, as well as Italy and Spain, showing a decline in housing prices. Overall in Europe, rents have been steadily climbing since 2010, but housing prices have shown more volatility, decreasing from 2011 to 2014, before rising again, and began outpacing rent increases in 2018.

Last year, the Grapevine published a detailed feature on the rental market in Reykjavík, and how foreign residents are especially vulnerable to being unable to ever hope to buy a home of their own.

The full Eurostat report, along with a link to an explainer article, can be read here.