Iceland’s population grew by 1.5% in 2024, reaching 389,444 as of January 1, 2025, according to Statistics Iceland. While overall growth continues, the proportion of elderly residents is now at its highest level ever recorded.
Steady population growth over the past year
As reported by Statistics Iceland, Iceland’s total population stood at 389,444 on January 1, 2025, an increase of 5,718 people (1.5%) compared to the previous year.
As previously reported, Statistics Iceland introduced a new method for population estimation in March 2024 (the institute had previously overestimated Iceland’s population at 398,971 as of January 1, 2024).
At the start of the year, Iceland’s population included 199,622 men (+1.6%), 189,623 women (+1.4%), and 199 non-binary or other-gender individuals (+25.2%).
Elderly population at its highest-ever proportion
As noted by Statistics Iceland, Iceland’s age demographics have changed significantly over recent decades, with the proportion of elderly residents rising and the share of children declining.
The dependency ratio, which compares the number of elderly individuals (65+) and children (0–19) to the working-age population (20–64)—and is used to measure the pressure on the productive population—has shifted notably over the past ten years:
Children (0–19 years): Decreased from 46.6% to 40.7% of the working-age population.
Elderly (65+): Increased from 23.3% to 26.5%, marking the highest level ever recorded.
This trend mirrors demographic changes in many Western countries, driven by longer life expectancy and declining birth rates.
South Iceland sees most significant growth
Population growth over the past year varied across Iceland’s regions. The Capital Region saw an increase of 4,877 residents in 2024, a 2.0% growth rate. Southern Iceland experienced the highest relative growth at 3.5%, followed by West Iceland (2.0%).
Other regions recorded below-average growth:
Northeast Iceland: +1.4%
East Iceland: +1.2%
Northwest Iceland: +0.8%
Westfjords: +0.1%
In contrast, the Suðurnes region saw a 4.4% population decline, primarily due to relocations from Grindavík following ongoing geologic and volcanic unrest.
Population declined in 9 of 62 municipalities
As of January 1, 2025, Iceland had 62 municipalities, two fewer than in 2024 due to administrative changes.
Reykjavík remains the country’s largest municipality, with 138,772 residents. Tjörneshreppur, the smallest municipality, has only 53 residents. Twenty-seven municipalities have fewer than 1,000 residents, including four with fewer than 100.
Grindavík sees sharpest population decline
In 2024, nine municipalities saw population declines, with the most dramatic drop in Grindavík, which lost 2,333 residents (−65%).
Among Iceland’s 11 largest municipalities (5,000+ residents), the highest growth rates were recorded in Garðabær in the capital region (+5.4%) and Árborg in South Iceland (+4.3%). Meanwhile, Reykjavík's growth rate (1.4%) remained below the national average. The lowest growth among major municipalities was in Múlaþing in East Iceland (+1.1%) and Akureyri in North Iceland (+1.2%).
