Iceland’s glorious mountains, hot springs, and glimpses of the Northern Lights have made it a bucket-list destination for tourists across the world. But like many Instagram-famous locations, it has found itself in a trap: how to cater to visitors while maintaining living standards for locals.
Visitor data is evidence of Iceland’s meteoric rise to a travel hotspot. Between 2021 and 2022, there was a 146% jump in foreign visitors and last year the number of tourists outpaced Icelandic residents nearly six-fold, according to Bloomberg.
But as travelers continue to flock to Iceland, boosting its economy and creating new jobs, it has also left nationals out in the cold in an increasingly hot housing market.
Increased tourism, which accounts for about 6% of Iceland’s GDP, has meant a greater demand for workers and therefore, a greater need for housing.
In January 2023, the country’s population was up 3% year over year, marking the largest increase since 1734, according to official body
