The town of Blönduós is the largest urban area at Húnaflói. The oldest shop in Blönduós was named Möllersverslun. This shop symbolizes the orign of the town of Blönduós. Höfðakaupstaður, which the Danes often called Skagestrand after the region, was an authorised trading place/harbour from the time of the trade monopoly. The nearest harbour to the west was in Reykjafjörður at Strandir. It was considered a long way to travel from the valleys to Höfðakaupstaður so members of the parliament from the region demanded authorisation for a harbour at Húnaflói.
In 1875 a new harbour was authorised at Blönduós and a shop was founded on the south side of the riverbank by Thomas J. Thomsen. He died soon after and his brother in-law, Johan Georg Möller, continued with the business. After that the shop was called Möllers shop (Möllersbúð). At the same time the Hillebrandt house was moved from Skagaströnd to Blönduós as the merchant Hillebrandt intended to be in competition with the merchant Möller.
A bridge was built over the river Blanda in 1897, a good kilometre from the estuary. The same year as the bridge was constructed a church was moved from Hjaltabakki to Blönduós. Also in the same year Blönduós became the quarters for the county sheriff and the regional doctor. In the river Blanda, which runs through the town, there is an Island known as Hrútey. This island is protected and has good walking paths. Just outside the town at Vatnahverfi is a 9-hole golf course. At Blönduós tourist information centre its possible to find information about all the interesting places and recreational opportunities that can be found in the region.
About one thousand people live in Blönduós. Employment is connected to agriculture, industry, services and fishing industry. A regional cooperative has its headquarters in Blönduós. A creamery and butchery is operated in the town. At Blönduós there is a well-equipped hospital, health service, service apartments for the elderly, a community centre, a sports centre, swimming pool and hotpots, good camping, a hotel, café and much more. A handcraft museum, the only one of a kind in Iceland, is to be found in Blönduós. The new church was designed by Dr. Maggi Jónsson, it has a very distinctive look but Dr. Maggi Jónsson used paradigms from the surrounding natural environment for inspiration to the look and form of the church. The church is open all summer from the middle of June until the middle of August.