Denmark is facing a significant shortage of available rental properties, with the housing turnover rate at its lowest level since 2014. This situation is primarily driven by high demand in major cities like Copenhagen and Aarhus.

According to EjendomDanmark, a landlord trade organization, the national housing turnover rate was just 2.3 percent on April 1st of this year, reflecting a 1.2 percentage point decrease within the past year. This indicates a considerable reduction in vacant rental properties across the country.

The organization’s director, Peter Stenholm, highlights the disparity between housing demand and supply in urban areas. He points out that Copenhagen alone may face a shortage of up to 80,000 homes by 2060, based on figures from the Municipality of Copenhagen.

The shortage is particularly acute in Copenhagen, where only 1.9 percent of rental properties were vacant on April 1st. Aarhus faces a similar challenge, with a vacancy rate of just 1.4 percent.

Bjarke Roed-Frederiksen, chief economist at EjendomDanmark, suggests that rising prices for owner-occupied housing are contributing to the increased demand for rental properties.

Rental housing is becoming an attractive option due to its relative affordability, flexibility, and freedom compared to homeownership. Despite economic uncertainties and new property taxes, prices for owner-occupied housing continue to increase.

Peter Stenholm emphasizes the need for increased construction to address the housing shortage. He suggests that municipalities should explore options such as converting commercial premises into residential units or utilizing empty attic spaces to create more homes.