According to preliminary numbers from the survey of income and living conditions conducted by Statistics Iceland (EU-SILC), the housing cost overburden rate was 12.8% among Icelandic homes in 2021. The rate was 9% for owner-occupied households, whereas 27% of households on the rental market were overburdened by housing costs.
Housing cost overburden is not evenly distributed, as 28.5% of households in the lowest income quintile experienced overburdening housing cost, while the rate was much lower in the other income quintiles. However, the housing cost overburden rate has been declining in recent years for households in the lowest income quintile and the rate for 2021 is the lowest since the year 2004.
Since 2016, the housing cost overburden rate has increased for households with children but decreased for households without children. In 2021, the rate was similar for both types of households or around 13%.
About the data
The results stem from the Statistics on Income and Living condition survey (SILC). The sample is drawn on a random basis from the National Registry of Persons. The selected respondent provides all information about the living conditions of the household, their own conditions and the conditions of other household members.
Housing cost overburden rate is based on calculations of the housing cost burden. The housing cost burden is calculated as the percentage of disposable household income that is spent on housing. The housing cost overburden rate is the percentage of the population living in households where total housing costs ('net' of housing allowances) represent more than 40 % of disposable income ('net' of housing allowances).
Total disposable income is the total household income, including social benefits, minus taxes. Profits from the sale of stocks and securities are not included in EU-SILC. Other capital income, such as interest income and dividends on shares, is included.
The response rate of the survey of income and living conditions in Iceland was 64% in 2019 and 2020 and 68% in 2021. Just over 3,000 households respond to the survey each year.
Estimates for 2019-2021 are preliminary.