Planning began in 1950 of the Smáíbúðahverfi (Small-residence district), between Bústaðavegur and Sogavegur. Plots were allotted for small detached residences, where the owners could do much of the construction work themselves. In new feature of the district is the cul-de-sac. A competition on small homes was held in 1951 and many of the houses In the district are built to the winning design of architect Gunnar H. Ólafsson.
