 The population of the village has increased in recent years from 134 in 1990, to 220 in 2015, mainly due to its close proximity to the capital Tórshavn, while still preserving the feeling of living in the countryside.The place name Velbastaður is unique in the Faroes as it is the only settlement with the ending "staður", meaning place or location.The name is by many considered the same as the Old Norse "Vébólstaðr", meaning farm with a Vé or shrine.