Reykjavík

As of May 2026, Reykjavík, Kópavogur, Hafnarfjörður have 2,706 active Airbnb and VRBO listings. This represents a 14% decrease from the previous year.

The average Airbnb or VRBO in Reykjavík generates ISK5.6M per year. High-performing properties earn ISK10.4M/year, while low-performing properties earn ISK2.3M/year. This wide earnings gap suggests a bifurcated market where top-tier assets capture significantly more value, likely due to premium positioning despite an overall contraction in total market revenue.

Airbnb and VRBO can be profitable in Reykjavík. Average annual revenue is ISK5.6M with 49% occupancy. High-performing properties earn up to ISK10.4M/year. The 49% occupancy rate reflects a moderate utilization environment, where revenue potential is highly concentrated in the top performers, highlighting a stark divide between elite and average inventory.

The average occupancy rate for Airbnbs and VRBOs in Reykjavík is 49%. This occupancy level, combined with an average nightly rate of ISK34K, results in a RevPAR (revenue per available room) of ISK10K per day.

4+ bedroom properties demonstrate the strongest performance in Reykjavík, with annual revenue of ISK9.9M. These properties balance operating costs and rental demand most effectively in the Reykjavík market. Property performance varies significantly by location, amenities, and management quality.

Short-term rental regulations vary by jurisdiction in the Reykjavík area. Reykjavík: Strict. Business license required, primary residence rule, max 90 days/year for non-primary residences. Active enforcement with fines and platform cooperation. Kópavogur: Strict. Similar to Reykjavík - registration required, primary residence rule, 90-day cap. Enforcement active, violations prosecuted. Hafnarfjörður: Strict. Business permit mandatory, primary residence requirement, 90-day annual limit. Active monitoring and enforcement through inspections. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Reykjavík Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 14% year-over-year, while RevPAR has decreased 7%. This indicates balanced supply-demand dynamics. The synchronized contraction in both supply and revenue suggests that the market is adjusting to lower demand without creating an oversupply surplus.

Launch around May, 2-3 months before peak summer season (August peaks). This pre-peak timing lets you build reviews when competition is 9% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (May-January) when gaining traction is harder.

The most common amenities in Reykjavík listings include: Kitchen (94%), Tv (85%), Heating (78%), Washing Machine (62%), Balcony (54%). Amenities that boost revenue the most include Washing Machine, Lake Access, Hot Tub, with Washing Machine properties earning approximately 40% more (ISK9.5M/year vs ISK6.8M/year).

Monthly estimated revenue per listing in Reykjavík over the last 12 months: May: ISK254K, June: ISK363K, July: ISK438K, August: ISK459K, September: ISK323K, October: ISK294K, November: ISK222K, December: ISK311K, January: ISK215K, February: ISK292K, March: ISK324K, April: ISK259K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Reykjavík is ISK34K, up 6% year-over-year. By property size: 1-bedroom properties average ISK25K/night, 2-bedroom properties average ISK42K/night, 3-bedroom properties average ISK52K/night, 4+ bedroom properties average ISK92K/night. Rates peak in August and are lowest in January.

Guests in Reykjavík book an average of 47 days in advance, down 18% from last year. By property size: 1-bedroom: 44 days, 2-bedroom: 52 days, 3-bedroom: 55 days, 4+ bedroom: 56 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Reykjavík Airbnb and VRBO market has seen the following changes: supply declined 14%, revenue per listing decreased 7%, occupancy rose 0%, average nightly rates increased 6%, and lead time decreased 18%. These metrics show a shift toward shorter booking windows and higher pricing, suggesting hosts are reacting to compressed demand by tightening operational flexibility.

In Reykjavík, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 12% higher occupancy than weekdays.