One of the effects of the tourism boom in recent years has been an acute shortage of cheap rental properties, as apartments which were previously rented out long-term have been converted into Airbnbs, raising rental prices. According to analysis by the government Housing Financing Fund the average rental price for a one bedroom apartment in downtown Reykjavík is 188,000 ISK (ca 1,687 USD/1,434 EUR).
Rent is not cheap in Reykjavík
According to the analysis (pdf) of HFF rental prices in Reykjavík are higher than in any other Nordic capital, whether or not we look at the city center or suburbs. Copenhagen, where the average rent for a one bedroom apartment (apartment with bedroom, living room and kitchen or kitchen facilities) comes in second place with 164,000 ISK (1,471 USD/1,250 EUR).
Rental prices are somewhat lower outside the downtown area. The average rental price in the suburbs is 150,000 ISK (1,345 USD/1,144 EUR). The average price for a square meter in a two room apartment (one bedroom and one living room with kitchen or kitchen facilities) centrally in Reykjavík is 3,205 ISK (29 USD/24 EUR).
Rental prices have risen by 8.8% in the past year, according to official statistics from the government property registry.
Young people live with parents
The high rental prices in Reykjavík, and a shortage of student housing at the University of Iceland, is also a major reason for the high proportion of young Icelanders who still live with their parents. According to the analysis of HFF 14% of Icelanders aged 25-34 years old still live with their parents. This is more than twice as many as in the other Nordic countries, where fewer than 6% of people in this age group still live with their parents.
Airbnb apartments returning to rental market
There is hope on the horizon, however. As more new hotels are completed and the City of Reykjavík cracks down on unregistered Airbnb apartments many former travel rentals are beginning to return to the long-term rental market. According to recent data from the City of Reykjavík the number of apartments in Reykjavík listed on the home sharing site has dropped by 29% since February.
Read more: Fewer Reykjavík apartments listed on Airbnb: 29% drop over past six months
One of the effects of the tourism boom in recent years has been an acute shortage of cheap rental properties, as apartments which were previously rented out long-term have been converted into Airbnbs, raising rental prices. According to analysis by the government Housing Financing Fund the average rental price for a one bedroom apartment in downtown Reykjavík is 188,000 ISK (ca 1,687 USD/1,434 EUR).
Rent is not cheap in Reykjavík
According to the analysis (pdf) of HFF rental prices in Reykjavík are higher than in any other Nordic capital, whether or not we look at the city center or suburbs. Copenhagen, where the average rent for a one bedroom apartment (apartment with bedroom, living room and kitchen or kitchen facilities) comes in second place with 164,000 ISK (1,471 USD/1,250 EUR).
Rental prices are somewhat lower outside the downtown area. The average rental price in the suburbs is 150,000 ISK (1,345 USD/1,144 EUR). The average price for a square meter in a two room apartment (one bedroom and one living room with kitchen or kitchen facilities) centrally in Reykjavík is 3,205 ISK (29 USD/24 EUR).
Rental prices have risen by 8.8% in the past year, according to official statistics from the government property registry.
Young people live with parents
The high rental prices in Reykjavík, and a shortage of student housing at the University of Iceland, is also a major reason for the high proportion of young Icelanders who still live with their parents. According to the analysis of HFF 14% of Icelanders aged 25-34 years old still live with their parents. This is more than twice as many as in the other Nordic countries, where fewer than 6% of people in this age group still live with their parents.
Airbnb apartments returning to rental market
There is hope on the horizon, however. As more new hotels are completed and the City of Reykjavík cracks down on unregistered Airbnb apartments many former travel rentals are beginning to return to the long-term rental market. According to recent data from the City of Reykjavík the number of apartments in Reykjavík listed on the home sharing site has dropped by 29% since February.
Read more: Fewer Reykjavík apartments listed on Airbnb: 29% drop over past six months
