Do the Gods reside within or are confined to a geographical place or do they live within their folk? From a folkish perspective I would have to answer that the latter is true. Both the Eddas and the writings of Tacitus tell us clearly that we, the Ario-Germanic peoples are the offspring of our Gods:
"In ancient lays, their only type of historical tradition, they celebrate Tuisto, a god brought forth from the earth. They attribute to him a son, Mannus, the source and founder of their people, and to Mannus three sons, from whose names those nearest the Ocean are Ingvaeones, those in the middle Herminones, and the rest Istvaeones." (Germania 2.2, Rives translation)
"In the traditional songs which form their only record of the past the Germans celebrate an earth-born god called Tuisto. His son Mannus is supposed to be the fountain-head of their race and himself to have begotten three sons who gave their names to three groups of tribes-the Ingvaeones, nearest the sea; the Herminones, in the interior; and the Istvaeones, who comprise all the rest." (Germania 2, Mattingley/Handford translation)The underlining is mine for emphasis. The Gods Tuisto and Mannus are not directly referred to in the Eddas but we must bear in mind that over 1,000 years separates these writings and Germania is more concerned with continental Germania (broadly the German-speaking lands and the Low Countries).
Rudolf Simek makes the interesting observation that:
"The structure of the mythical genealogy (Tuisto-Mannus-3 sons) is also found in the cosmogeny of the Edda where Buri-Borr-Odin/Vili/Ve are said to be the ancestors of all the other gods.
"Mannus corresponds to the progenitor Manus (manu 'man') in the Old Indian myth of creation. The > myth of descendancy of Mannus would appear to be traceable back to Indo-Germanic times." (Dictionary of Northern Mythology)
The God Mannus is represented by the Mannaz/Mann/Madhr/Man Rune. As Edred Thorsson in his book Futhark (1984) states:
"This is the rune that describes the Germanic peoples as being descended from their divine order and defines mankind as the progeny of the gods."
So in Germania we have an ancient myth traceable not only to the Germanic peoples but to the undivided Aryans. Simek has this to say about Tuisto:
"Tuisto seems to be related to the proto-giant> Ymir as the earth-born hermaphrodite ancestor of the race of man, and therefore the meaning of the name Tuisto as 'hermaphrodite' is quite likely. The form of the name Tuisco (the actual manuscript reading) can also be traced back etymologically to the same basic meaning."
Simek also points out that one of Odin's by-names is Tveggi, meaning 'the hermaphrodite, the double'. However he explains that this is more likely to do with "the dark and light aspects of his character" than anything else.
Odin is certainly represented as the creator of man. This clearly is demonstrated in Voluspa 17 and 18 in the Elder Edda. Rig who may be either Odin or Heimdall is responsible for the creation of the Germanic castes, a tripartite ordering that goes back to Aryan times. From the Anglo-Saxon Chronicles and other historical records and sagas Odin is represented as the ancestor of noble lineages but He is also the ancestor of all Teutons, not just the noble and powerful. The divine sonship of all Teutons is made abundantly clear in Germania 2.
Our Gods therefore are primarily resident within us, within our blood or DNA as taught by Carl Gustav Jung in his remarkable essay Wotan (1936). All those who are of Germanic blood are the sons and daughters of Woden/Wodan/Wotan/Odin. Whereever we go in this world (or in other worlds) the Gods are contained within us. However the long settlement of Germanic peoples within a defined territory does sanctify the soil and make it holy. This is the case not only in Scandinavia and Germania but in England also. This is the blood and soil aspect of our religion.
"Today, a new faith is awakening-the myth of the blood, the belief that the divine being of all mankind is to be defended with the blood. The faith is embodied by the fullest realisation that the Nordic blood constitutes that mystery which has supplanted and surmounted the old sacraments." (Myth of the Twentieth Century, Alfred Rosenberg).