Meeting Calls For Housing Action
04. February 2026Clear Call for Greater Government Responsibility in Housing Policy
Housing is one of the most pressing and significant collective bargaining issues facing working people in Iceland today. This was the clear and unequivocal conclusion of a well-attended meeting hosted jointly by the union VR and the Federation of Icelandic Industries (SI) on Tuesday, 3 February, under the title Unity on Reforms in Housing Policy. The meeting brought together representatives of workers, employers, municipalities, and both public and private institutions involved in housing development across the country.
A striking consensus at the meeting was that public authorities must assume a clearer and more substantial role in housing policy. While there was not full agreement on the precise division of responsibilities between the state and municipalities in housing development, there was a strong and shared willingness to cooperate and coordinate efforts. The objective is clear: to simplify processes, shorten construction timelines, and ensure that housing supply meets the real needs of society.
Housing as a collective bargaining issue
For many years, VR has placed strong emphasis on housing security for workers. In her address at the meeting, Halla Gunnarsdóttir, Chair of VR, discussed housing from the perspective of working people and underlined that housing costs are the single largest driver of inflation.
She called on the authorities to move beyond short-term initiatives and ad hoc measures and instead commit to a long-term, coherent vision for housing policy.
“Housing must be taken out of the framework of temporary projects and placed within a long-term strategy, with the aim that everyone can secure a roof over their head on affordable terms,” said Halla. She noted that it is rare to see such strong alignment between the country’s largest trade union and one of largest employers’ organisation.
In an address by the Minister of Social Affairs and Housing, Ragnar Þór Ingólfsson, the government’s willingness was expressed to explore ways of better supporting municipalities, particularly with regard to infrastructure development, which is often a major bottleneck in residential construction.
From analysis to action
The meeting was attended by representatives from nearly all sectors involved in housing development, including contractors, architects, real estate companies, municipalities, the Housing and Construction Authority (HMS), and trade unions. The discussion focused on the current state of the housing market, future prospects, and the central question of how to move from analysis and discussion to concrete action.
Kristín Amalía Líndal, economist at the Housing and Construction Authority, presented an overview of the housing market at the beginning of the year. Ingólfur Bender, Chief Economist of SI, reviewed municipal fee structures and their impact on housing development. Representatives from the construction sector shared practical experiences from the field, while attention was also given to how population ageing will affect future housing demand.
Lively panel discussions followed, with participation from representatives of municipalities, construction companies, housing associations, architects, workers, and employers. Once again, it was emphasised that solutions cannot be delivered by any single actor alone, but require shared responsibility and stronger leadership.
A shared call to action
The meeting delivered a clear message: housing is not merely a planning or market issue, but a fundamental collective bargaining concern that affects living standards, inflation, and social stability. The united position of VR and the Confederation of Icelandic Enterprise demonstrates that there is broad-based support for taking the next steps — provided that public authorities are prepared to listen and assume responsibility.
The full meeting is available to view online.
Source: VR