Tourism Development and Housing After Iceland’s 2008 Crash

In late 2008, the global economic crisis hit Iceland particularly hard, causing the nation’s banking system to collapse. This dire situation exacerbated the sense of precariousness among Icelanders in general. While the nation suffered broadly due to the crash, the effects were unequally distributed. Many faced the loss of their livelihoods and homes, in some cases with irrevocable consequences. These feelings were reinforced due to the simultaneous surge in real estate prices and the massive growth of tourism after the crisis. Despite the impressive subsequent economic recovery and significant hikes in wages, many people still cannot afford a home over a decade later.