To date, there are only 179 apartments for rent in Reykjavík, the lowest recorded number of rentals available.
The founder of Leiguland.is, Ásgeir Gunnarsson, has been following the rental market since 2019. When he started, there were around 1,000 apartments for rent. The Tenants Association declared a state of emergency in March 2022 due to lack of properties.
“The supply of rental apartments is very low at the moment and it doesn’t look like it’s going to improve anytime soon,” Ásgeir says in Leiguland’s report, linked below. “Small rooms, which are usually between 10 and 20 square meters, are the most expensive, and the price per square meter can easily go up to ISK 8,000-10,000. Standard apartments from 60 to 120 m² are between 2,000 and 4,000 ISK per square meter.
Most of the apartments are located in postcodes 101 and 105 because students and young people want to live in the city center. Most advertised rentals are private rooms for rent and 45% of adverts are over 80 days old.
“Apartments that were once long-term rentals have become short-term rentals on Airbnb today, charging between $80 and $300 a night, which no normal person can compete with,” says Ásgeir. “There was a temporary situation with COVID and a big lack of tourists where there was a supply of Airbnb properties in the long-term rental market, which has now declined [to short-term].”
You can track the data here.