The vacation rental market in Iceland is growing slowly but surely. There are now 85 rentals up for grabs on HomeAway and just over a dozen on VRBO. While that’s not a lot compared to other countries, given the population of Iceland, it’s a relatively large number. The good news is that the vacation rentals available are quite affordable, especially for large groups.
Rates for flats that sleep anywhere from 2-6 people in downtown Reykjavik range from $60 to $300 per night. If you book ahead, it’s easy to find a place in Reykjavik for under $100 per night; if you’re traveling with 2-3 other people, that’s quite a deal. There are also several properties available in the countryside of southeast Iceland, close to Reykjavik. Generally these are bit more expensive but they also sleep more people and so are ideal for larger groups. You can snag a place that sleeps 5-6 for around $200-$300 per night, or even bunk in a house that sleeps up to ten for around $1200 per week (which works out to less than $20 per person, per night!).
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Vacation rentals in Iceland can be a great deal because they allow you to easily self-cater and cook your own meals, which can save you a few hundred dollars over the course of the week. But, unless your vacation rental is in Reykjavik, be aware that you’ll need to rent a car to get around, and car rentals in Iceland are not cheap.
Vacation rentals are ideal if you plan to base yourself in one spot and do many day trips around the region, planned on having a car each day, are traveling with a large group, or prefer to cook your own meals. If you plan on eating out most nights or are traveling solo in Iceland, a vacation rental may not be the most economical choice.
Photo by Patrick Gage