This interactive exhibit has been constructed around remains of a Viking longhouse dating from around 871 (hence its name). Unearthed in 2001 during the construction of the Hotel Centrum, this remarkable find was preserved in situ and now occupies an oval-shape basement designed specially to frame the excavation site. A large, backlit panoramic image, showing how Reykjavík might have looked during the age of settlement, encircles the longhouse, and an illuminated strip installed in the surrounding walls marks the layer of tephra used to determine the approximate date of the remnants. Display boxes positioned around the longhouse house a collection of small items that were also unearthed in the excavation, giving a more complete picture of what life was like for Reykjavík's earliest inhabitants.
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Though established as a single-room exhibition, the Settlement Exhibition has been expanded in recent years, occupying the basement of neighboring buildings on Aðalstræti and making its way aboveground in the historic black timber house that stands at Aðalstræti 10. These newer wings continue the story of Reykjavík into the modern day, tracking the development of the capital through photos, video, and a scale model of the historic Kvósin neighborhood that is brought to life with the help of VR viewfinders. Aðalstræti has been staged partly as the residence of Reykjavík's bishop in the 19th century and partly as a general store from the early 20th century—two roles the building has played over the course of its life.