Expat Housing Guide: Moving to Reykjavik

Reykjavik's housing market is notably competitive with limited inventory and high demand, especially in central areas. Prices have been steadily increasing over the past decade, with a significant acceleration since 2015. The market primarily consists of apartments in low-rise buildings (typically 3-5 floors), single-family homes in suburban areas, and row houses. New construction has increased but struggles to meet demand. The market has become increasingly international, with foreign investment and expatriate demand influencing prices. Housing quality is generally high with excellent insulation standards due to the harsh climate, though properties vary significantly in age from historic downtown buildings to modern developments in newer districts.