Surveys suggest that more than half of Icelanders believe in, or at least entertain the possibility of the existence of, the Huldufolk - the hidden people. Just to be clear, Icelandic elves are not the small, green, pointy-eared variety that help Santa pack the toys at Christmas - they're the same size as you and I, they're just invisible to most of us.
Contrary to popular belief outside of Iceland,
these would not represent a good choice for an elf house.
They just use them to get out of the rain like everybody else.