alexisroberto asked: Hello again! I asked you a question a while back about traveling in Iceland, for an application I was writing. Now I have to propose a budget for the whole year! I was wondering if you could give me any info. about general cost of living (groceries, etc.) in Reykjavík versus smaller towns in the North and East. Also- is it hard to rent a car in Iceland? Any resources will be greatly appreciated. Thanks so much- your posts have been extremely helpful in writing my applications :)
Buying a house outside of Reykjavik would be much cheaper, but I’m not sure that translates into a big difference in the rental market. Depending on what towns you are thinking about, the rental market may be tiny or non-existent.
Groceries in Iceland are nearly always cheapest at the Bónus stores. Bónus has the same price around the country and if there is a Bónus store in the town you live in you can expect groceries to be up to a third cheaper than if you are stuck with a local market. People as far as Höfn drive to Selfoss to shop at Bónus (400km).
Living in Reykjavik will definitely give you many more opportunities to spend money on entertainment and eating out. That doesn’t really affect the minimum cost, but is likely to raise anybody’s cost.
Transport in Iceland is quite focused around private cars. I’d say that a town like Akureyri or Ísafjörður would be the perfect places to live without cars. Everything is somewhat within walking distance and you don’t have to go to neighbor towns for shopping. Renting cars in Iceland is not difficult (usually 21y age limit), but it is expensive. Keep in mind though that only the largest towns have car rentals. Reykjavík, Akureyri and maybe Ísafjörður and Egilsstaðir are the only places you can reliably rent cars year round.
Gangi þér vel and let me know how it goes.