Do they all live in Igloos mom?

Absolutuly not!
Icelandic people have an obsession about their houses.
In countries where the weather is mild, your home is the whole village, or at least the whole street.
In Greece for instance, people eat outdoors most of the year, and somebodys front yeard is the meeting place for half the village.
As the waeather in Iceland is frankly not to be trusted and bad as hell 9 months a year, people spend a lot of time indoors.
So naturally the home is the place where you spend most of your time.

The horrors of indoor decoration fashion.

Icelandic people want "the best".
This causes them to choose what is "the best" and most fashionable at each moment, no matter what they are buying or building.
A good (or was it bad) example is that in 1996 the most hip kitchens were all made in wood from roots of nut trees.
This may have looked ultra hip that year, but as Cool Iceland feared that year, the hipness of such extreemes crashed to the ground with such loud noise, that the sky rattles. Soon after these 20k USD kitchens had been erected, they had to be demolished to preserve the coolness of the property as a whole.

Cool or not?