Where to Stay in Reykjavík
Cheapest areas, hostel districts, and budget tips
Our pick for backpackers
Stay in Miðborg (City Center)
Kex Hostel provides a social atmosphere and affordable lodging, with central access to amenities.
Best Neighborhoods for Backpackers
Ranked by relevance for backpackers visiting Reykjavík
Miðborg (City Center)
LuxuryThe vibrant heart of Reykjavík, packed with colorful buildings, shops, restaurants, and nightlife.
- +Most attractions are within walking distance.
- +Abundant dining and entertainment options.
- +Excellent public transport connections.
- -Can be very crowded, especially in summer.
- -Accommodation can be expensive.
Vesturbær
Mid-rangeA charming, more residential area offering a quieter, local feel with good amenities.
- +More affordable than the absolute center.
- +Quieter and more relaxed atmosphere.
- +Good access to local swimming pools and parks.
- -Slightly further from the main nightlife.
- -Fewer dining options compared to the city center.
Grandagarður / Old Harbour
LuxuryA revitalized harbor area buzzing with whale watching tours, maritime museums, and trendy eateries.
- +Gateway to popular boat tours.
- +Excellent seafood restaurants.
- +Interesting maritime history and museums.
- -Can be tourist-focused and busy.
- -Limited nightlife options.
Daily Budget (Budget)
ISK 15000/day
Hidden Gems in Reykjavík
Lesser-known spots the locals love
Reykjavik Laundromat Cafe
This quirky cafe doubles as a laundromat, offering a relaxed atmosphere with excellent coffee, breakfast, and lunch options. It's a popular local hangout with a fun, eclectic vibe and a dedicated kids' play area.
Bæjarins Beztu Pylsur
Often cited as the best hot dog stand in Reykjavik, this spot is a must-try for locals and adventurous travelers. Order 'one with everything' for a taste of their unique lamb hot dog with crispy onions and sweet mustard.
1 area to be cautious about
Read our full safety guide for Reykjavík