10 Best Places to Live on the Coast in Iceland

Reykjavik

Reykjavik, the capital of Iceland, is a coastal city with a population of around 131,000 people. The waterfront is characterized by a rugged coastline with rocky beaches, offering picturesque views of the North Atlantic Ocean. Reykjavik is the largest city in Iceland and serves as the country's cultural and economic hub. The public transportation system in the city consists of buses, known as Strætó, which connect various parts of the city and its suburbs. The climate in Reykjavik is subpolar oceanic, with average temperatures ranging from -1°C (30°F) in January to 11°C (52°F) in July. The city offers a variety of recreational activities, including golfing at the Grafarholt Golf Course and the Korpa Golf Course, swimming at Laugardalslaug and Árbæjarlaug pools, and enjoying the outdoors at Elliðaárdalur Park and Klambratún Park. Reykjavik is a popular tourist destination, known for its vibrant culture, rich history, and stunning natural beauty. Rental properties in Reykjavik vary in price, but a modern 2-bedroom apartment near the water can cost around 300,000 ISK (2,400 EUR or 2,800 USD) per month, while a 3-bedroom apartment may cost around 400,000 ISK (3,200 EUR or 3,700 USD) per month. For grocery shopping, residents have access to both large chain stores, such as Bónus and Krónan, and smaller local stores. People enjoy living in Reykjavik for its high quality of life, friendly atmosphere, and access to various cultural events and outdoor activities. The city's unique blend of urban amenities and natural beauty make it an attractive place to live and visit.

Local Recommendations:

Savor the flavors of Reykjavik at these must-visit dining spots. Start your culinary journey at Grillmarkaðurinn, where you'll find a menu filled with locally sourced ingredients, including fresh seafood and succulent lamb. For a more casual experience, head to Bæjarins Beztu Pylsur, a legendary hot dog stand that has been serving up delicious Icelandic-style hot dogs since 1937. Finally, don't miss out on the cozy ambiance and mouthwatering dishes at Snaps Bistro, where you can indulge in French-inspired cuisine with an Icelandic twist. After a day of feasting, retreat to the stylish and comfortable Canopy by Hilton Reykjavik City Centre, or opt for the luxurious Hotel Borg, where you'll find elegant Art Deco-inspired rooms and a relaxing spa to unwind in.

Akranes

Akranes, is a charming coastal town located on the west coast of the country, boasting a population of approximately 7,000 residents. Situated about 49 kilometers north of Reykjavik, the town is easily accessible via the Hvalfjörður Tunnel, making it a convenient destination for those looking to explore the Icelandic countryside. The waterfront in Akranes is characterized by a mix of sandy beaches and rugged coastline, offering picturesque views and opportunities for leisurely strolls. The climate in Akranes is cool and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Recreational activities in Akranes are abundant, with options such as golfing at the Akranes Golf Club, exploring the Akranes Lighthouse, and visiting the Akranes Folk Museum. The town also offers several parks, including the beautiful Garðalundur Park, which is perfect for picnics and outdoor activities. While Akranes is not a major tourist destination, it does attract visitors who appreciate its natural beauty, rich history, and friendly atmosphere. Rental properties in Akranes can vary, but a modern 2-bedroom apartment near the water may cost around 180,000 ISK (1,400 EUR or 1,650 USD) per month, while a 3-bedroom apartment could be around 220,000 ISK (1,700 EUR or 2,000 USD) per month. For grocery shopping, residents can choose from a variety of stores, such as the larger chain store Bónus or smaller local shops like Kjörbúðin and Netto. People enjoy living in Akranes for its close-knit community, stunning natural surroundings, and relaxed pace of life. The town's proximity to Reykjavik also allows for easy access to the capital's amenities and attractions while maintaining a peaceful, small-town atmosphere. Overall, Akranes offers a unique and appealing lifestyle for those who appreciate the beauty and charm of coastal Iceland.

Local Recommendations:

Savor the flavors of Akranes, by indulging in the culinary delights of Gamla Kaupfélagið, a cozy bistro offering a variety of delicious dishes made from locally sourced ingredients. For a more casual dining experience, head to Akranes Fish & Chips, where you can enjoy freshly caught fish paired with crispy fries. If you're craving something sweet, pop into Kaffi Amma for a steaming cup of coffee and a scrumptious pastry. After a day of exploring, unwind at the charming Hótel Laxárbakki, nestled along the banks of the Laxá River, or opt for the modern and stylish Akra Guesthouse, conveniently located in the heart of the town.

Stykkisholmur

Stykkisholmur, is a picturesque coastal town with a population of around 1,200 people. Located on the Snæfellsnes Peninsula, it is approximately 172 km from Reykjavik, the country's capital. The waterfront of Stykkisholmur is characterized by a rugged coastline with rocky beaches, offering stunning views of the surrounding landscape. The climate in Stykkisholmur is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. There are various recreational activities available in and around Stykkisholmur, including hiking, birdwatching, and exploring the natural beauty of the Snæfellsnes Peninsula. The town is also home to the Stykkisholmur Golf Club, which offers a 9-hole golf course with beautiful views of the surrounding area. Additionally, the town has a public swimming pool, Sundlaug Stykkisholms, where locals and visitors can enjoy a relaxing swim. Stykkisholmur is a popular destination for tourists, as it serves as a gateway to the Snæfellsnes Peninsula and its many attractions, such as the Snæfellsjokull National Park and the iconic Kirkjufell mountain. The town itself is known for its colorful houses, charming harbor, and the Volcano Museum, which showcases the geological history of Iceland. Rental properties in Stykkisholmur can vary in price, but a modern 2-bedroom apartment near the water may cost around 150,000 ISK (1,200 EUR or 1,400 USD) per month, while a 3-bedroom apartment could be around 200,000 ISK (1,600 EUR or 1,900 USD) per month. For grocery shopping, residents can visit the local supermarket, Kjarval, which offers a variety of fresh produce and other essentials. People enjoy living in Stykkisholmur for its close-knit community, stunning natural surroundings, and relaxed pace of life. The town's location on the Snæfellsnes Peninsula provides ample opportunities for outdoor activities and exploration, while its charming atmosphere and friendly locals make it a welcoming place to call home.

Local Recommendations:

Savor the flavors of Stykkisholmur at Narfeyrarstofa, a cozy restaurant known for its delicious seafood dishes and local ingredients. Don't miss out on their famous fish soup, a must-try for any foodie. For a more casual dining experience, head to Sjavarpakkhusid, a charming harbor-side eatery offering fresh seafood and stunning views. After a day of exploring, unwind at the elegant Fosshotel Stykkisholmur, boasting modern amenities and picturesque surroundings. Alternatively, opt for the quaint and welcoming Fransiskus Hotel, where you'll feel right at home in the heart of this charming Icelandic town.

Husavik

Husavik, is a picturesque coastal town located in the northeastern part of the country, with a population of around 2,300 people. It is situated approximately 480 kilometers from Reykjavik, the capital city of Iceland. The waterfront of Husavik is characterized by a rugged coastline with rocky beaches, offering breathtaking views of the surrounding landscape. The climate in Husavik is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Husavik is known for its recreational activities, particularly whale watching, which attracts numerous tourists each year. The town is home to the Husavik Whale Museum and several whale watching tour operators. Other recreational spots in the area include the GeoSea Geothermal Sea Baths, where visitors can relax in warm, mineral-rich waters while enjoying the stunning views of Skjálfandi Bay. The nearby Lake Mývatn and Ásbyrgi Canyon also offer excellent opportunities for hiking and exploring the unique Icelandic nature. Husavik is a popular tourist destination, but it still maintains its small-town charm and authentic Icelandic atmosphere. Rental properties in the area can vary, but a modern 2-bedroom apartment near the water may cost around 150,000 ISK (1,200 EUR or 1,400 USD) per month, while a 3-bedroom house could be around 200,000 ISK (1,600 EUR or 1,900 USD) per month. For grocery shopping, residents can visit local stores such as Kjörbúðin and Netto, which offer a variety of fresh produce and Icelandic products. People enjoy living in Husavik for its stunning natural beauty, friendly community, and the wide range of outdoor activities available. The town's location on the coast provides residents with easy access to the ocean, while the nearby natural attractions offer endless opportunities for exploration and adventure. The combination of a peaceful, small-town atmosphere and the excitement of a popular tourist destination makes Husavik a truly unique and enjoyable place to live.

Local Recommendations:

Savor the flavors of Husavik at the charming Naustið, a cozy seafood restaurant housed in a former boathouse. Feast on their famous fish soup or indulge in the catch of the day, all while enjoying the stunning harbor views. For a more casual dining experience, head to Gamli Baukur, a lively pub offering traditional Icelandic dishes and a wide selection of local beers. After a day of whale watching and exploring, unwind at the elegant Fosshotel Husavik, a modern hotel boasting comfortable rooms and a delightful in-house restaurant. Alternatively, opt for the Cape Hotel, a family-run establishment with a warm atmosphere and a prime location near the harbor.

Isafjordur

Isafjordur, is a picturesque coastal town located in the Westfjords region, with a population of approximately 2,600 people. The waterfront is characterized by a rugged coastline, with rocky beaches and stunning fjords. It is situated about 450 km from Reykjavik, the capital city of Iceland. Public transportation is available in the form of buses, connecting Isafjordur to other towns in the Westfjords and to Reykjavik. The climate in Isafjordur is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Recreational activities in Isafjordur are abundant, with a focus on outdoor pursuits such as hiking, skiing, and kayaking. Popular spots include the Hornstrandir Nature Reserve, the ski area at Tungudalur, and the Dynjandi waterfall. While there are no golf clubs or swim clubs in the town, the surrounding natural beauty offers plenty of opportunities for outdoor enthusiasts. Isafjordur is not overly touristy, but it does attract visitors who are interested in exploring the Westfjords and experiencing authentic Icelandic culture. Rental properties in Isafjordur can be found through local real estate agencies, with the average monthly rent for a modern 2-bedroom apartment near the water being around 150,000 ISK (1,200 EUR or 1,400 USD) and a modern 3-bedroom apartment costing around 200,000 ISK (1,600 EUR or 1,900 USD). Grocery shopping in Isafjordur is mainly done at local supermarkets such as Bonus and Netto, as well as smaller stores and bakeries. People enjoy living in Isafjordur for its close-knit community, stunning natural surroundings, and relaxed pace of life. The town offers a high quality of life, with excellent healthcare and educational facilities, as well as a rich cultural scene that includes music festivals and art exhibitions. The combination of natural beauty, outdoor activities, and a strong sense of community make Isafjordur a unique and appealing place to call home.

Local Recommendations:

Tantalize your taste buds in Isafjordur with a visit to Tjöruhúsið, a charming seafood restaurant housed in a historic warehouse. Here, you'll indulge in a delicious buffet-style feast featuring the freshest catch of the day, cooked to perfection. For a more casual dining experience, head to Húsið, a cozy café and bistro offering a variety of Icelandic dishes, including their famous fish soup. After a day of exploring, unwind at the chic Hotel Isafjordur, boasting modern amenities and stunning views of the fjord. Alternatively, immerse yourself in local culture by staying at Gamla Guesthouse, a charming bed and breakfast located in a beautifully restored historic building.

Olafsvik

Olafsvik is a picturesque coastal town located on the western side of the Snæfellsnes Peninsula, with a population of approximately 1,000 residents. The town is situated about 190 kilometers from Reykjavik, the capital city of Iceland. The waterfront of Olafsvik features a combination of rugged coastline and rocky beaches, offering breathtaking views of the surrounding landscape. The climate in Olafsvik is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Recreational activities in Olafsvik are mainly focused on outdoor pursuits, such as hiking, birdwatching, and fishing. Popular spots in the area include the Snæfellsjökull National Park, which offers various hiking trails and opportunities to explore the unique volcanic and glacial landscapes, and the Búðir black church, a historical site surrounded by stunning lava fields. Although there are no golf clubs or swim clubs in Olafsvik, the natural beauty of the area provides ample opportunities for outdoor enthusiasts to enjoy. Olafsvik is not a highly touristy destination, but it does attract visitors who are interested in exploring the natural wonders of Iceland. Rental properties in the area can vary, but a modern 2-bedroom apartment near the water may cost around 150,000 ISK (1,200 EUR or 1,400 USD) per month, while a 3-bedroom apartment could be around 200,000 ISK (1,600 EUR or 1,900 USD) per month. For grocery shopping, residents can visit local stores such as Kjörbúðin and Samkaup, which offer a variety of food and household items. People enjoy living in Olafsvik for its peaceful atmosphere, close-knit community, and stunning natural surroundings. The town's location on the Snæfellsnes Peninsula provides easy access to some of Iceland's most beautiful landscapes, making it an ideal place for those who appreciate the great outdoors and a slower pace of life.

Local Recommendations:

Discover the culinary delights of Olafsvik, by indulging in mouthwatering dishes at Hraun, a cozy restaurant offering a variety of seafood and traditional Icelandic cuisine. For a more casual dining experience, head to Gamla Rif, a charming café with a selection of homemade cakes, sandwiches, and soups. Don't miss out on the delicious fish and chips at Kaffi 59, a local favorite for a quick and satisfying meal. After a day of exploring, unwind at the modern and comfortable Hotel Olafsvik, boasting stunning views of the surrounding mountains and sea. Alternatively, enjoy the warm hospitality and cozy atmosphere of the family-run Guesthouse Langaholt, nestled amidst the breathtaking landscapes of the Snæfellsnes Peninsula.

Siglufjordur

Siglufjordur, is a picturesque coastal town located in the northern part of the country, with a population of around 1,200 people. It is situated approximately 80 kilometers from the larger city of Akureyri. The waterfront of Siglufjordur features a rugged coastline with rocky beaches, offering breathtaking views of the surrounding mountains and fjords. The climate in Siglufjordur is cold and temperate, with average temperatures ranging from -2°C (28°F) in winter to 11°C (52°F) in summer. Recreational activities in Siglufjordur include hiking, skiing, and fishing. The town is home to the popular Herring Era Museum, which showcases the history of the herring industry in Iceland. For outdoor enthusiasts, the nearby Skardsdalur Valley offers excellent hiking trails, while the Siglufjordur Ski Area provides opportunities for skiing and snowboarding during the winter months. Siglufjordur is not overly touristy, but it does attract visitors who are interested in exploring the natural beauty of the region and experiencing the charm of a small Icelandic town. Rental properties in Siglufjordur can vary, but a modern 2-bedroom apartment near the water may cost around 150,000 ISK (1,200 EUR or 1,400 USD) per month, while a 3-bedroom apartment could be around 200,000 ISK (1,600 EUR or 1,900 USD) per month. Grocery shopping in Siglufjordur can be done at local stores such as Kjörbúðin and Samkaup, which offer a variety of fresh produce, meats, and other household items. People enjoy living in Siglufjordur for its close-knit community, stunning natural surroundings, and the opportunity to experience a slower pace of life away from the hustle and bustle of larger cities.

Local Recommendations:

Discover the culinary delights of Siglufjordur at Hannes Boy, a cozy restaurant offering a variety of delicious seafood dishes, including their famous fish soup. For a more casual dining experience, head to Kaffi Rauðka, where you can enjoy a warm cup of coffee and a selection of homemade cakes and sandwiches. Don't miss the opportunity to try traditional Icelandic cuisine at Sigló Hotel's Sunna Restaurant, which boasts stunning views of the harbor and surrounding mountains. After a day of exploring, unwind at the charming Sigló Hotel, a beautifully restored fisherman's lodge, or opt for the modern comforts of Siglo Hótel, where you can relax in their outdoor hot tubs while taking in the breathtaking scenery.

Hofn

Hofn, is a picturesque coastal town located in the southeastern part of the country, with a population of approximately 2,300 residents. It is situated about 458 kilometers (285 miles) from Reykjavik, the capital city of Iceland. The waterfront in Hofn is characterized by a rugged coastline, with rocky beaches that offer stunning views of the surrounding landscape. The climate in Hofn is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Recreational activities in Hofn are abundant, with a focus on outdoor pursuits such as hiking, birdwatching, and exploring the nearby Vatnajokull National Park. The town is also known for its annual lobster festival, which attracts both locals and tourists alike. Hofn is not overly touristy, but it does offer a range of accommodations and services for visitors, including guesthouses, hotels, and restaurants. Rental properties in Hofn can vary in price, but a modern 2-bedroom apartment near the water may cost around 150,000 ISK ($1,200 USD or €1,000) per month, while a 3-bedroom apartment could be around 200,000 ISK ($1,600 USD or €1,350) per month. For grocery shopping, residents can visit the local supermarket, Netto, or smaller stores such as Kjarval and Samkaup. People enjoy living in Hofn for its natural beauty, close-knit community, and relaxed pace of life. The town's location near Vatnajokull National Park and the stunning coastline make it an ideal place for those who appreciate the great outdoors and the unique Icelandic landscape.

Local Recommendations:

Discover the culinary delights of Hofn, by indulging in the freshest seafood at Humarhöfnin, a charming restaurant set in a historic building. Savor the taste of locally sourced langoustines, a must-try delicacy, while enjoying the stunning harbor views. For a more casual dining experience, head to Kaffi Hornið, a cozy eatery offering a variety of Icelandic dishes, including their famous fish soup. After a day of exploring, unwind at the Fosshotel Vatnajokull, a stylish hotel boasting modern amenities and breathtaking views of the Vatnajokull glacier. Alternatively, opt for the quaint and comfortable Hofn Guesthouse, where you'll be treated to warm Icelandic hospitality and a delicious breakfast to kickstart your day.

Vik

Vik is a small coastal town located in the southern part of the country, with a population of around 300 people. It is situated approximately 180 kilometers from the capital city, Reykjavik. The waterfront in Vik is characterized by its black sand beaches, rugged coastline, and striking rock formations. The town's climate is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Recreational activities in Vik include hiking, birdwatching, and exploring the nearby natural wonders. Some popular spots to visit are the Reynisfjara Black Sand Beach, Dyrhólaey Peninsula, and the Reynisdrangar sea stacks. Vik is also a great base for exploring the nearby Vatnajökull National Park and the Fjaðrárgljúfur canyon. The town is quite touristy, especially during the summer months, as it is a popular stop along the Ring Road, which circles the entire island. Rental properties in Vik can be found through local real estate agencies or online platforms. The average monthly rent for a modern 2-bedroom apartment near the water is around 150,000 ISK (1,200 EUR or 1,400 USD), while a modern 3-bedroom apartment would cost around 200,000 ISK (1,600 EUR or 1,900 USD). For grocery shopping, residents of Vik can visit the local supermarket, Kjarval, which offers a variety of fresh produce, meats, and other essentials. There are also smaller convenience stores and specialty shops in the town. People enjoy living in Vik for its stunning natural beauty, close-knit community, and outdoor recreational opportunities. The town's location along the Ring Road also makes it convenient for exploring other parts of Iceland. While Vik may not have international schools, golf clubs, or swim clubs, its unique landscape and charm make it an attractive place to live and visit.

Local Recommendations:

Discover the culinary delights of Vik, by indulging in mouthwatering dishes at these top-notch restaurants. Begin your gastronomic journey at Sudur-Vik, a cozy eatery offering a variety of traditional Icelandic dishes, including their famous lamb soup and fresh seafood. For a more casual dining experience, head to Strondin Bistro and Bar, where you can savor delicious burgers, pizzas, and local beers while enjoying stunning views of the ocean. After a day of exploring, unwind at the elegant Icelandair Hotel Vik, boasting modern amenities and breathtaking views of the surrounding landscape. Alternatively, opt for the charming Puffin Hotel Vik, a family-run establishment known for its warm hospitality and comfortable accommodations.

Grundarfjordur

Grundarfjordur, is a picturesque coastal town located on the Snæfellsnes Peninsula, with a population of approximately 900 residents. The waterfront is characterized by a rugged coastline, with rocky beaches and stunning views of the surrounding mountains and fjords. Grundarfjordur is about a 2-hour drive from Reykjavik, the capital city of Iceland. The climate in Grundarfjordur is cold and temperate, with average temperatures ranging from -1°C (30°F) in winter to 11°C (52°F) in summer. Recreational activities in Grundarfjordur are mainly focused on outdoor pursuits, such as hiking, birdwatching, and exploring the natural beauty of the area. The town is home to the famous Kirkjufell mountain, which is a popular spot for photographers and hikers alike. The Snæfellsjökull National Park is also nearby, offering visitors the opportunity to explore glaciers, lava fields, and unique geological formations. Grundarfjordur is not particularly touristy, but it does attract visitors who are interested in experiencing the natural beauty and tranquility of Iceland. Rental properties in Grundarfjordur can vary in price, but a modern 2-bedroom apartment near the water may cost around 150,000 ISK (1,200 EUR or 1,400 USD) per month, while a 3-bedroom apartment could be around 200,000 ISK (1,600 EUR or 1,900 USD) per month. For grocery shopping, residents can visit the local supermarket, Samkaup Strax, which offers a variety of fresh produce, meats, and other household items. People enjoy living in Grundarfjordur for its peaceful atmosphere, stunning natural surroundings, and close-knit community. The town offers a slower pace of life, away from the hustle and bustle of larger cities, while still providing access to essential amenities and services. The breathtaking landscapes and outdoor recreational opportunities make Grundarfjordur an ideal place for nature lovers and those seeking a quieter lifestyle.

Local Recommendations:

Savor the flavors of Grundarfjordur at Bjargarsteinn Mathus, a charming restaurant with stunning views of Kirkjufell mountain. Indulge in their delicious seafood dishes, such as the catch of the day or the mouthwatering langoustine soup. For a more casual dining experience, head to Laki Hafnarkaffi, a cozy café offering a variety of sandwiches, soups, and homemade cakes. Don't miss their famous fish and chips, a local favorite. After a day of exploring, unwind at the elegant Kirkjufell Hotel, boasting modern amenities and breathtaking views of the surrounding landscape. Alternatively, opt for the quaint Grundarfjordur Guesthouse and Apartments, where you'll enjoy a warm, welcoming atmosphere and comfortable accommodations.