Fact Check: Is Iceland expensive?

Is Iceland Expensive? A Fact-Check

Introduction

The claim that "Iceland is expensive" has gained traction in discussions about travel and living costs. This assertion often stems from comparisons with other countries, particularly the United States and the United Kingdom. However, the degree of expense can vary based on specific factors such as location, lifestyle, and the items being compared. This article will explore the available data on the cost of living in Iceland and critically evaluate the sources behind these claims.

What We Know

1. Cost Comparison: According to a report from LivingCost, the average cost of living in Iceland is approximately $2,828, which is 13% higher than the average in the United States, estimated at $2,498 1.
2. Numbeo Data: Numbeo, a user-contributed database, indicates that the cost of living in Iceland is 40.8% higher than in the United States when excluding rent. Including rent, the difference is reported to be 32.6% 2.
3. Specific Price Comparisons: A blog on TravelTables notes that Iceland's grocery prices are significantly higher, with a general trend indicating that restaurant prices are 50.2% higher than those in the United States 32.
4. General Consensus: Other sources, such as Expat Focus, corroborate the assertion that Iceland is generally more expensive than both the UK and the USA, citing a cost of living index of 107.79 for Iceland compared to 76.86 for the USA 9.
5. Living Expenses: A detailed breakdown from Iceland with a View lists average monthly expenses for a single person at around 146,421 ISK (approximately $1,509) excluding rent, while a family of four averages about 371,166 ISK (approximately $3,800) 5.

Analysis

The claim that Iceland is expensive is supported by multiple sources, yet the reliability and bias of these sources must be critically assessed:

• LivingCost and Numbeo: Both sources provide comparative data on cost of living, but they rely on user-generated content (Numbeo) and may not always reflect the most current economic conditions. User-generated data can be subject to bias and inaccuracies. Additionally, LivingCost's methodology for calculating average costs is not fully transparent, which raises questions about the accuracy of their figures 12.

• Travel and Expat Blogs: Blogs like TravelTables and Iceland with a View offer anecdotal evidence and personal experiences, which can be insightful but are not always comprehensive or statistically valid. They often lack rigorous methodology and may present a skewed perspective based on individual experiences 35.

• Comparative Indices: The use of cost of living indices, such as those from Numbeo and Expat Focus, can provide a useful snapshot, but they may not account for regional variations within Iceland itself. For example, living costs in Reykjavik may differ significantly from those in rural areas, yet many comparisons do not specify these distinctions 9.

• Potential Conflicts of Interest: Some sources may have an agenda, particularly those aimed at attracting tourists or expatriates to Iceland. This could lead to a portrayal of Iceland that emphasizes its allure while downplaying the financial implications of living or traveling there.

What Additional Information Would Be Helpful?

To further substantiate claims about Iceland's expense, additional data would be beneficial, including:

• Detailed breakdowns of costs in different regions of Iceland to account for geographical variance.
• Longitudinal studies that track cost changes over time to provide context for current figures.
• Comparisons of purchasing power and average salaries in Iceland relative to living costs, which would help contextualize the expense.
• Insights from local residents regarding their experiences with everyday costs versus tourist prices.

Conclusion

Verdict: True

The claim that Iceland is expensive is supported by a variety of sources, including cost of living comparisons and specific price data that indicate higher costs relative to the United States and the United Kingdom. Key evidence includes reports from LivingCost and Numbeo, which show that the average cost of living in Iceland is significantly higher than in these countries, as well as anecdotal evidence from travel blogs that highlight elevated prices for groceries and dining.

However, it is important to note that while the overall assertion is valid, the degree of expense can vary based on individual circumstances, such as location within Iceland and personal lifestyle choices. Additionally, the sources used to support this claim have limitations, including potential biases and a lack of comprehensive data that accounts for regional differences within Iceland.

Readers are encouraged to critically evaluate the information presented and consider their own experiences and perspectives when assessing the cost of living in Iceland.

Sources

1. LivingCost. "Iceland vs US comparison: Cost of Living, Prices, Salary." https://livingcost.org/cost/iceland/united-states
2. Numbeo. "Cost Of Living Comparison Between United States And Iceland." https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+States&country2=Iceland
3. TravelTables. "Cost of living and prices in Iceland Updated Jul 2023." https://traveltables.com/country/iceland/cost-of-living/
4. Leverage Edu. "Cost of Living in Iceland: Updated Prices, Other Countries Comparison." https://leverageedu.com/learn/cost-of-living-in-iceland/
5. Iceland with a View. "Cost of Living in Iceland: Groceries, Housing, Transport, and More." https://icelandwithaview.com/how-much-it-costs-to-live-in-reykjavik-iceland-monthly-expenses/
6. Expatriate Healthcare. "How Much Does It Cost to Live in Iceland?" https://www.expatriatehealthcare.com/how-much-does-it-cost-to-live-in-iceland/
7. Expat Focus. "Iceland - Cost of Living." https://www.expatfocus.com/iceland/guide/iceland-cost-of-living