Housing shortage “may lead to a class society”

Tórshavn is rapidly turning into a city where only rich people can afford to live.

So argues Fróði Magnussen, the new head of the Economic Council.

“House prices have for many years been increasing at a much higher rate than wages, which obviously means it is getting harder and harder for young families to set up house.”

Rich and poor districts

This scarcity on the housing market, he argues, may soon result in a capital region in which only a certain demographic – rich people – can afford to live.

“The only way to avoid this is to speed up the building of new homes. A good start would be if Tórshavn City Council manages to come up with 300 new building plots immediately.”

Tórshavn mayor Heðin Mortensen says that 150 plots will be available within the next six months, and many more are in the pipeline.

Minus to plus

The Economic Council also says that the Covid crisis is over and the time has come to start looking forward and turn the budget deficit into a surplus as early as next year.

This is possible, says finance minister Jørgen Niclasen, but it is more likely that 2022 will see another deficit, followed by a surplus in 2023.

GDP approaching DKK 22 billion

The Faroese GDP currently stands at almost DKK 22 billion, having increased by about DKK 1.5 billion in the past year.

Next year’s GDP is estimated at just below DKK 22.7 billion.

Read the Faroese version of this article here.

Translated by prosa.fo.

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