Húsavík has been an important seaport and trading town for Iceland, dating back to the first settlement. Húsavík's first inhabitant is believed to have been a Swedish Viking named Garðar Svavarsson. According to Landnáma, one of the country's oldest written documents, he sailed around Iceland in 870 A.D., discovering that it was an island and named it Garðarshólmi. He landed in the cove here, naming it Húsavik (House Cove), stayed for the winter and built a house. When spring broke, Garðar set out for Norway, leaving one of his men behind, called Náttfari. The cove across the bay is named after him, Náttfaravík.
The Húsavík area was scarcely populated by a few farms, until the discovery of sulphur brought a small yet industrious population to the area. The sulphur was exported from Mývatnssveit and Þeistareykir via Húsavík and used in the manufacturing of gunpowder during the nineteenth century.
Towards the end of the year 1901, Húsavík's population was only 313. Most of the constructions were still made of turf. The first wooden house was built in 1880 and the first houses made of concrete were built shortly after 1900. The town distinguished its residents by house names, which are even today still visible on some of the houses. By 1950, the town's growing population demanded street names and numbers. The town was also beginning to define its character a bit more, being a merchant hub for goods and services. At the end of the year 2002, Húsavík's population had grown to 2,484.
The most important industry in Húsavík, past and present, is fish processing. The history of fish processing began with salting in 1871. Just a little over a decade after the fish processing began, in 1882, the local farmers united and founded the first Co-Op at Þverá in Laxárdal. They built and ran a store in Húsavík, in addition to other production companies. About 100 years later, the shrimp industry began.
Most of the houses in town are now heated with geothermal water from boreholes at Hveravellir by way of the Húsavík Energy Plant. The water reaches temperatures up to 130°C, which the energy plant sells to industries, then harnesses as electricity and finally distributes at various temperatures for multiple purposes, such as for heating greenhouses, buildings, swimming pools, aquaculture and melting snow during winter. This complex utilization of geothermal and electric energy is a new way to enhance the energy source's value while decreasing pollution in the atmosphere.
Today, Húsavík flourishes proudly with its multitude of growing services. Taking care of the ongoing flow of generations, the town provides educational services for all ages, ranging from the very young in the playschools, through to the older years with an elementary and high school, a college, and even a music school. Home and care for the elderly is just as much a priority as the younger generations are. Húsavík has caringly preserved its past while maintaining modern standards, making it not only a great place to visit, but also a great place to live.
