I would live in your room, Nick. I want to guard your stuff so that your idiot brother doesn't take stuff. I would be a badass and kick him out of your room and into jail. Roadhouse. yes this is a serious answer i want to be in your room.
I would live in San Francisco. I would live in San Francisco even if I wasn't a fairy.
No, I would live in the Honeydew Kingdom, ruled over by the benevolent Queen Gertrudia so I could sleep in a bed made of flower petals and drink milk tea all day except when I go out and spread cheer and joy and grant wishes to poor girls who have to stay home from dances to do homework.
If I was a fairy, I'd live in Fairy World (the Fairly OddParents version of it) because it has several aspects that are close to the human world. But then again, getting bossed around by Jorgen Von Strangle is going to suck.
A scale model replica of an automobile of some sort. I've seen one for the 1980's Buick Regal floating around so that would be my first choice. That way I can claim to be a fairy that lives out of their car xD
I'd live in my pillowcase. That way it's nice and comfortable and right on my bed so I can sleep whenever I please. I'd have to go search for food in the air vents or the refrigerator, which would be a long distance considering my diminution fairy body, but the trek to the kitchen will be eventful indeed.