Government Outlines Latest Homelessness Housing Plan

2026-02-20 - 09:35

Plans to increase housing provision for people experiencing homelessness are being developed at both national and municipal level, as reported by RÚV. The Minister of Social Affairs and Housing said the government is preparing a formal policy on homelessness as part of a broader housing action package. What's the Story? Policy on homelessness in preparation by the Minister of Social Affairs and Housing, with state funding to support municipalities Around 400 people used emergency shelters in Reykjavík last year; 77 currently housed by the City of Reykjavík More than 100 additional housing spaces planned in Reykjavík Reykjavík City hall. Photo: Golli. Iceland Review. Housing strategy outlined While the housing action package has not yet been introduced, the minister confirmed that state funding would support cooperation with municipalities. “If the state is involved with this with funding then I think it’s completely safe to say that the state intends to work with the municipalities to raise the bar in this area. This is part of the government’s housing action package, part of an action package that has not actually been introduced yet.” In the capital, the City of Reykjavík is planning to increase capacity. Soffía Hjördís Ólafsdóttir, who leads the city’s homelessness services, said around 400 individuals used emergency shelters last year. The city currently accommodates 77 residents and intends to create more than 100 additional spaces. “Some are even living in precarious situations elsewhere and we are trying to capture their situation through intensive fieldwork at the City of Reykjavík,” says Soffía. Asked whether the system had failed, she responded: “Yes, I think it’s something we need to accept and face.”