Though Iceland is as big as the state of Ohio in the United States of America, three quarters of the land is uninhabitable. Most of the main cities and towns are clustered in the coastal areas throughout Iceland. Half of the population in Iceland lives in the capital city of Reykjavik, and the six municipalities in the Greater Reykjavik area are largely made up of small towns.

Álftanes This peninsula to the south of Reykjavik is an urban suburb of modern dwellings. Since it is a beautiful nature reserve, bird watching is a favorite pastime. Tourist agencies such as Farm Holidays, conduct bird watching excursions here, along with beach hiking.

Garðabær This is the sixth largest town in Iceland. Considered different from other municipalities because of its housing projects, Garðabær is fast becoming an urban hangout for most of the young people that stay there. Among the highlights are the countless music concerts and an annual jazz festival that draw crowds from all of Scandinavia. Accommodations, such as the Fell Guesthouse and Isafold are relatively inexpensive.

Hafnarfjörður A major town on the outskirts Reykjavik, it is the next best place to be in Iceland after the capital city. Cafes, tourist agencies (Blue Biking, Mountain Taxi, Ishestar), restaurants (A. Hansen), and accommodation (Guesthouse Helguhus, Vid Laekinn Guesthouse) are quickly getting Hafnarfjörður noticed on the map.

Kópavogur This mini city gets attention because of its active nightlife. Second to Reykjavik in population, Kópavogur is a nouveau-riche city, bustling with shopping arcades, art performances, restaurants, pubs, and other places of business and enjoyment. The sports facilities are considered the best in the country. Hotels such as Hotel Smari, guesthouses (Guesthouse BB 44), and fastfood chains (TGI Fridays, Pizza Höllin) are in abundance here.

Mosfellsbær This place is nature's bounty within the Greater Reykjavik area. It's a great place for hiking, mountain biking and other recreational sports. Horseback tours (at Ferdahestar and Laxnes Horse Farm), and golf (at Hlíðavollur and Bakkakotsvollur) are major attractions here.

Seltjarnarnes This residential area is well known for its migratory birds. During high tide Seltjarnarnes gets separated from the mainland. The late summer sunset is one of the most spectacular sights in the world. The only astronomers' club in Iceland is situated here. Golfers can head to the Golf Club Nes.