Curt Liliegreen, the director of the Housing Economic Knowledge Center in Denmark, has issued a strong critique of recent proposals by Minister for Housing Kaare Dybvad Bek concerning housing price surges. He argues that the introduction of more affordable housing and new regulations on Airbnb rentals will not significantly affect the soaring prices in the private housing market, where homeowners are increasingly seeing their property values escalate disproportionately compared to their earnings from regular employment.

Liliegreen emphasizes that the measures taken are insufficient to address the root causes of housing price inflation. To mitigate the rising costs in the owner-occupied housing market effectively, he posits that there needs to be a substantial increase in the construction of owner-occupied homes. However, he notes that such a solution is not immediately forthcoming, suggesting that real change may be a long way off.

This commentary brings attention to the pressing issue of housing availability and affordability in Denmark, indicating that while the government is attempting to intervene with policy solutions, the underlying market dynamics may not be adequately addressed. The implications of this assessment reflect a growing concern over the widening gap between property values and local incomes, posing challenges for future housing policy and economic stability in the country.