Where do most people in Iceland live?

The majority of Iceland's population is concentrated in the capital city, Reykjavík, and its surrounding metropolitan area. About two-thirds of Iceland's population lives in this region. Update (2023-11-18): Most people in Iceland live in the capital city of Reykjavik and in small towns and villages throughout the country. In addition to Reykjavik, other major cities in Iceland include Akureyri, Hafnarfjordur, and Keflavik.