Copenhagen is expected to face a significant housing shortage by 2060, with estimates indicating a deficit of up to 80,000 homes (“boliger”) according to data from Københavns Kommune. This growing challenge is underlined by the current historic low in vacant rental properties (lejeboliger) across Denmark, particularly in the largest urban centers.
Housing vacancy rates reach historic lows in Denmark’s major cities
The share of vacant rental properties, known as boligtomgang, has fallen to its lowest level since records began in 2014. According to the industry association EjendomDanmark, the nationwide vacancy rate stood at just 2.3% on April 1, 2025, down 1.2 percentage points from the previous year. This decline signals intensifying pressure on the housing market in Copenhagen and other large cities.
In the capital, only 1.9% of rental homes were vacant at the start of April. In Aarhus, the vacancy rate was even lower, at just 1.4%. These figures highlight a growing imbalance between supply and demand for housing, especially in urban centers experiencing population growth and increased economic activity.
Demand for housing continues to outpace supply in Copenhagen
According to Peter Stenholm, CEO of EjendomDanmark, the most critical challenge is the “massive demand for homes in the largest cities, and there are not enough available.” The shortage is particularly pronounced in Copenhagen, where municipal forecasts predict that up to 80,000 additional homes will be needed by 2060 to keep up with demographic and economic trends.
Current projections reflect Copenhagen’s status as an attractive destination for both domestic and international newcomers, driven by employment opportunities and quality of life. However, without substantial investment in new residential construction, experts warn that the shortage will worsen, with potential consequences for affordability and urban development.
Population growth and affordability concerns
Copenhagen’s population has grown steadily over the past decade, with official statistics projecting further increases by 2060. This demographic trend places further strain on the city’s already tight housing market. The low vacancy rates mean that competition for available rentals is fierce, often leading to higher prices and limited choices for tenants.
As of 2025, Denmark’s average rental vacancy rate is 2.3%, the lowest since data collection began in 2014. In comparison, healthy urban housing markets often target vacancy rates between 4 and 6 percent to balance availability and affordability.
Potential policy responses and future outlook
Municipal and industry leaders are calling for coordinated action to address Copenhagen’s housing shortage. Solutions under discussion include streamlining the planning and permitting process for new construction, promoting mixed-income developments, and increasing incentives for private investment in residential projects.
Failure to close the housing gap risks undermining Copenhagen’s appeal as a vibrant, inclusive, and economically competitive city. As the city prepares for the future, building enough homes to meet projected demand will remain a central priority for policymakers, developers, and residents alike.
