House and apartment hunting
Finding affordable housing is one of the main challenges of living in Iceland, affecting locals and newcomers alike. The cost of living is genuinely high, comparable to Switzerland and Norway, and the housing market in and around Reykjavík has become increasingly competitive in recent years. A significant increase in tourism and short-term rentals has reduced the availability of long-term rental housing.
In practice, it is worth giving yourself two to three months to find a place that fits your needs and your budget. One of the most effective approaches is to ask Icelanders directly, including new colleagues, since good listings often circulate through word of mouth before they appear online.
A few things to know before you sign a lease:
- Landlords commonly ask for two to three months' rent as a deposit up front.
- Always view a property in person before signing. Do not agree to a lease based on photos or a listing alone.
Finding a rental: useful resources
The following websites and Facebook groups list rental properties in Iceland. Note that "Höfuðborgarsvæðið" refers to the capital area.
A quick guide to Reykjavík postal codes: 101 is downtown. 105 and 107 are within walking distance of the city center. 103, 104, 108, and 109 are a bit farther out but are accessible by public transportation or bicycle.
When searching, you may encounter the following property types: Einbýlishús - single-family home
Fjölbýlishús - apartment
Raðhús - row house
Parhús - duplex
Hæð - floor (of a building)
On some search sites, you can select checkboxes to filter by neighborhood. "Tilboð" means an offer can be made, typically indicating that the landlord expects a higher price.
Thinking about buying a property?
