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This statistic shows the degree of urbanization in Iceland from 2013 to 2023. Urbanization means the share of urban population in the total population of a country. In 2023, 94.04 percent of Iceland's total population lived in urban areas and cities. 

The population of Iceland

Iceland is currently 94 percent urban, making it the eighth most urban country in the world. However, even though the majority of the population lives in urban areas, the island itself is not densely populated. The population overwhelmingly lives in the nation’s capital and largest city, Reykjavik, which is located in the southwest corner of the island and is considered the northernmost national capital in the world.

Reykjavik is only home to around 120,000 people and has more of a suburban feel to it than that of an urban metropolis. Reykjavik has become the home base for the country’s booming tourist industry for those who want to venture out to explore the island’s vast wilderness. In 2014 alone, there were around 4.4 million tourists who stopped on the island for a short stay (413264). The two second largest cities, Kopavogur and Hafnarfjour, are also located very close to the capital, and are each home to around 30,000 people- significantly less than the population of Reykjavik. In total, the small island nation reports a population of around 330,000 people as of 2015, and these figures are not likely to grow significantly in the future, as the fertility rate is less than the natural replacement rate and annual population growth is also low.