Icelanders live in modern, well-insulated houses designed to withstand harsh subarctic conditions. Construction typically uses concrete, wood, or a combination, featuring thick walls and double- or triple-glazed windows to retain heat. A hallmark of Icelandic housing is geothermal heating, which harnesses the island's volcanic activity to warm homes efficiently and sustainably.
Housing costs are high, especially in the capital region. However, government programs assist low-income families with affordability. Overall, Icelandic housing offers comfort and resilience against the cold.