Icelandic household assets surge over five percent with real estate leading growth

Between 2022 and 2023, the total assets of Icelanders increased significantly by over five percent in real terms. Real estate represents the largest portion of these assets, which saw a notable rise in value during this period. The total assets of residents exceeded their total liabilities, with individuals averaging about 9 trillion Icelandic krónur more in assets than debts last year.

As reported by Statistics Iceland, total assets grew by 14.5 percent in nominal terms, which adjusts to a real increase of 5.3 percent after factoring in price adjustments. Total assets were valued at approximately 12.284 trillion krónur last year, compared to total debts of 3.15 trillion krónur. In real terms, debts decreased by 2.8 percent after price adjustments, although they increased by 5.7 percent without accounting for inflation.

Household assets in Iceland include real estate, vehicles, bank deposits, and securities, with property values based on property assessments and stocks valued at nominal prices. The average Icelander now owns approximately 48.4 million krónur in assets and holds debts of about 12.4 million krónur. Equity increased from 7.748 trillion krónur in 2022 to 9.134 trillion krónur in 2023, primarily due to accelerated growth in assets compared to liabilities.

Overall, the value of real estate stands out, totaling around 9.659 trillion krónur, with a nominal increase of 15.5 percent from 2022 to 2023.