Where to Stay in Iceland: Why We Chose Selfoss Over Reykjavik for Our Family Trip

When planning our itinerary for our family-friendly September trip to Iceland with a 10-month-old, a 5-year-old, and both sets of parents, we had a lot to consider—especially where to stay. While most Iceland visitors automatically book accommodations in Reykjavik, we explored where to stay in Iceland besides Reykjavik to find a location that offered better access to Iceland’s incredible landscapes.

where to stay in iceland

How We Chose Our Iceland Home Base

We love the outdoors, and with four active grandparents in tow, we wanted easy access to Iceland’s natural wonders—without long hikes (although our “short hike” did end up being nearly six miles!). We also tend to prefer local experiences over tourist hotspots, so we quickly crossed the Blue Lagoon off our list (the cost was definitely a factor, too).

After consulting ChatGPT and reading countless blog posts, we narrowed down our must-visit spots:

  • Golden Circle highlights
  • A volcano hike
  • Hot springs
  • A public geothermal pool (suggested by an Icelandic acquaintance of Dani’s mom)
  • A black sand beach
  • The Northern Lights (if we got lucky!)

Since we planned to rent a car, we weren’t tied to Reykjavik. Instead, we mapped out key attractions in Google Maps (anyone else obsessed with saving locations for trip planning?) and explored nearby towns with good vacation rental options.

Selfoss vs. Reykjavik: Why We Stayed in Selfoss

We ultimately booked a modern cabin just 10 minutes north of Selfoss, and it was perfect for our multigenerational family trip.

👉 Why Selfoss?

  • Proximity: Just 50 minutes from Reykjavik and 1 hour 45 minutes from Keflavik Airport.
  • Amenities: A large town with multiple grocery stores, restaurants for all budgets, and a charming historic district.
  • Small-Town Feel: Unlike Reykjavik, parking is easy, and the area feels relaxed and welcoming.
  • Ideal Location for Exploring:
    • Golden Circle: Short drive to Thingvellir, Geysir, and Gullfoss.
    • South Coast: Manageable day trips to Seljalandsfoss, Skógafoss, and Vík.
    • Less Time Stuck in Reykjavik Traffic!

For those wondering where to stay in Iceland besides Reykjavik, Selfoss is a fantastic alternative. It keeps you close to key sights while avoiding the higher prices and congestion of the capital.

Our Iceland Itinerary from Selfoss

Once we settled into our cozy cabin, we set off to explore Iceland’s dramatic landscapes. Here’s a quick breakdown of our itinerary and drive times from Selfoss:

  • 🛁 Hveragerði – Geothermal Park & Reykjadalur Hot Spring Thermal River (24 minutes)
  • 🌊 Vík – Black Sand Beach & Lava Show (2 hours), stopping at:
    • 🌿 Seljalandsfoss Waterfall (1 hour 15 minutes)
    • 💦 Gljufrabui Waterfall
    • 🌊 Skógafoss Waterfall (30 minutes past Seljalandsfoss)
  • 🟡 Golden Circle – Thingvellir National Park (28 minutes) → Öxarárfoss Waterfall (40 minutes) → Strokkur Geyser (40 minutes)
  • 🌋 Fagradalsfjall Volcano (1 hour 11 minutes)
  • 🏙 Reykjavik – A day trip from Selfoss or last night before flight home (1 hour)
  • 🌋 Kerid Crater (5 minutes)

📌 Want to see all these spots on a map? I’ve saved them in shared Google Maps for easy reference!

Iceland Activities Map - Where to Stay in Iceland

If you’re planning your trip and wondering where to stay in Iceland, I highly recommend Selfoss over Reykjavik—especially for families who want more space, better access to nature, and a quieter atmosphere.

Would you stay in Selfoss or stick with Reykjavik? Let me know in the comments!

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