Ingólfur Arnarson and his Descendants

The settlement of Iceland began in the 9th century, from Norway. According to historical tradition and existing written sources, Iceland's first permanent settler was Ingólfur Arnarson, who made his home at Reykjavík around AD 870. Archaeological excavations in Aðalstræti and Suðurgata confirm this approximate date.

Little is known of Ingólfur's family or circumstances, except that his wife's name was Hallveig Fróðadóttir, their son was called Þorsteinn, and they had serfs named Vífill and Karli. They built a farmstead where modern Aðalstræti (Main Street) is located, but the estate was very extensive, from Brynjudalsá in Hvalfjörður to Ölfusá in Árnessýsla. The descendants of Ingólfur and Hallveig in the male line were known by the title Allsherjargoði (religious and secular leader), in deference to their status as descendants of the first settler. They initiated the foundation of the Kjalarnes Assembly, and played an important role in the foundation of the Alþingi (parliament) at Þingvellir in 930. Þorkell máni, grandson of Ingólfur and Hallveig, was Lawspeaker (highest official of the Alþingi). His son, Þormóður, was Allsherjargoði at the time of Iceland's adoption of Christianity in AD 1000.

Legend claims that the decision to settle in Reykjavík was placed in the hands of the gods: Ingólfur flung his high-seat pillars, carved in thelikeness of the Norse gods, into the sea, and swore to settle where the pillars washed ashore. It is, however, more likely that the place was chosen for its natural advantages: mild climate, good moorage, extensive lowland, shores where driftwood accumulated, marshes providing bog iron and peat for fuel, hot springs, excellent fishing grounds, plentiful resources of seabird eggs and seal hunting, good grazing land, cultivable offshore islands, and salmon rivers. The settlers would rely heavily upon fishing for food, so Ingólfur made an excellent choice.

By laying claim to such a vast amount of land, Ingólfur appears to have planned to have the power to decide who would settle in his sphere of influence in the southwest of Iceland. After Ingólfur's time, the extent of the Reykjavík estate was gradually reduced. At Seltjarnarnes, large estates arose, which competed in size with Reykjavík itself, perhaps due to division of the property among Ingólfur's descendants. Examples of this are Laugarnes and Nes at Seltjörn.

After 1000 AD, the estate of Reykjavík is rarely mentioned in sources, and Ingólfur's family vanishes from the pages of history. Woollen products became Iceland's principal export commodity, and so Reykjavík, an estate whose main resource was fish, was less prized than in the age of settlement.