The "elves" *ahem* made it from a wooden bookshelf bought at Michaels for about $10. Scrapbook paper was used as "wallpaper" and pictures of the Jonas brothers and Harry Potter were cut from People magazine to "hang" in the bedroom.
The furniture was made from wooden boxes of various sizes, also bought from Michaels. There's a wardrobe, a fridge, a table, chairs, a television (with a photo from the show "Handy Manny" glued on there), and a sofa.
The "tile" in the middle kitchen section is scrapbook paper while felt was used as "carpet" for the floors in the living room and bedroom section.
Oh, and wallet-sized photos of friends and family were framed using fridge magnet frames and hung in the bottom "living" room section.
In all, this dollhouse cost less than $50 to make.