Airbnb Occupancy Rate in Reykjavík, Iceland, Data & Trends 2026

Reykjavík posts solid, balanced numbers. Average occupancy is 66% over roughly 238 booked nights a year, exactly in line with the 66% Iceland national figure, since the capital is effectively the only major tracked market in the country. Where it stands out is rate: an average daily rate of 205 euros and average monthly revenue of 3,472 euros per listing reflect Iceland's famously high cost base and the willingness of well-heeled visitors to pay for it.

A 3% year-on-year revenue gain marks Reykjavík as one of the steadier performers in this batch, neither booming nor sliding. The 81% seasonality index sits in the mid-range here, confirming a market with a strong summer but a real winter aurora season underneath it. Read together, these figures describe a high-rate, moderate-occupancy market where premium pricing, not volume, does the heavy lifting on revenue.

Reykjavík is the gateway to Iceland's entire tourism economy, and short-term rental demand here is driven less by the compact capital itself than by what it gives access to. Visitors base in the city to explore the Golden Circle (Þingvellir, Geysir, Gullfoss), the Blue Lagoon, the South Coast waterfalls and glacier tours, and increasingly to chase the northern lights in the dark half of the year. The city's own draws, the Hallgrímskirkja church, the Harpa concert hall, the Laugavegur shopping street and a lively bar and food scene, anchor the stay even when the landscape is the main event.

Keflavík international airport funnels nearly every arriving tourist through Reykjavík, so the city captures the bulk of the country's nights. The traveller mix runs from summer road-trippers and stopover passengers breaking transatlantic flights to winter aurora hunters, giving the market a broader year-round spread than its latitude would suggest.

Reykjavík is small, so a handful of central areas hold most of the rentable stock. Miðborg, the downtown core around Laugavegur and Bankastræti, is the prime address: walkable to bars, restaurants, Hallgrímskirkja and Harpa, it commands the strongest rates and the steadiest demand. The Old Harbour and Grandi area just west has reinvented itself with whale-watching departures, museums and eateries, adding waterfront appeal.

Neighbourhoods like Þingholt, just uphill from the centre, offer quieter residential streets within walking distance of the action, while Vesturbær to the west is a calm, characterful district near the university and the Seltjarnarnes coast. Further out, areas near the domestic airport and the Laugardalur valley trade central buzz for space and parking, suiting road-trippers who want a car base. Centrality and walkability drive rate more than any single landmark.