Iceland's private rental market is comparatively small and lightly regulated by Nordic standards. Approximately 25–30% of Icelandic households rent their housing (vs ~70% homeownership), of which roughly half are in the private market and half in social/municipal housing. The Icelandic rental market was largely unregulated until the 2016 Húsaleigulög (Rent Act) reform, which introduced mandatory registration of rental contracts and basic tenant protections, but did not introduce rent controls. Rent increases have outpaced inflation in Reykjavík over 2018–2025, with average advertised rents for a 60 m² apartment in central Reykjavík reaching approximately ISK 280,000–320,000 per month (~EUR 1,850–2,100) in early 2026. By comparison, Denmark, Sweden, and Germany have various forms of rent regulation that constrain price increases in the existing rental stock.