This is the road to Árneshreppur, which has the lowest population of any populated area in Iceland. It’s well worth a drive down here to see the driftwood and Djúpavík (separate posts to follow).
There is potential for landslides in several places on this road, and in fact the road can be impassable for weeks at a time in winter. You’d really need to be good at planning ahead to live here! I love places like this.