You can spot squirrels just about anywhere—up in trees, under the ground, or even darting around city parks.
Most squirrels actually build their homes in tree nests (dreys) or hollow tree cavities, while ground squirrels dig burrows, and flying squirrels glide to tree hollows for nesting.
Let’s look at which types of homes fit which squirrels, so next time you’re out, you’ll know where to look.

Think back to the last squirrel you noticed—it probably used a drey, a hollow, or maybe a burrow close by.
Habitat, species, and even season all play a role in where squirrels sleep, hide, and raise their babies. If you look closely, you can spot the little signs they leave behind.
Where Did Squirrel Live: Main Habitats and Shelter Types
Squirrels pick from a few main living spots: high up in trees, burrows underground, and sometimes even human places like attics or nest boxes.
Their choices depend on food, safety, and whatever weather’s coming.
Tree Habitats and Dreys
You’ll find tree squirrels hanging out in mature forests, city parks, or any backyard with big enough trees.
They build dreys—those round, messy-looking nests made of twigs, leaves, and moss—wedged into branch forks or thick clumps of leaves.
Dreys break the wind, keep out the rain, and give squirrels a fast escape route if something comes prowling.
Some squirrels skip dreys and move into tree cavities instead. Cavities form from rotting wood or old woodpecker holes, offering better insulation when winter hits.
Flying squirrels also claim cavities and will happily move into nest boxes you put up. If you’re feeling helpful, try mounting a sturdy wooden box about 10–20 feet up, facing away from the wind.
Ground Burrows and Underground Homes
Ground squirrels stick to open fields, meadows, or woodland edges where the dirt’s easy to dig.
They dig out burrow networks with a bunch of entrances, sleeping chambers, food storage, and sneaky escape routes.
Burrows protect both babies and adults from hawks, foxes, and whatever else is hungry.
Some burrows have shallow tunnels for quick getaways, while others go deep to dodge the cold.
Prairie dogs and groundhog cousins create huge shared tunnel systems, but lots of ground squirrels just make small, family-sized burrows.
If you see loose dirt or little mounds, you might be standing near a burrow entrance.
Adaptation to Urban Environments
In cities and suburbs, squirrels use park and garden trees, but they’ll also move into human spaces when they get the chance.
You might catch them nesting in attics, chimneys, or even on building ledges.
They’ll squeeze into nest boxes, birdhouses, and fire escapes if trees are scarce.
Urban squirrels eat just about anything—birdseed, garden veggies, even snacks from people—and they get pretty bold around humans.
That can be a headache sometimes: they chew wires, nest in vents, and generally cause mischief.
If you want to steer them away from trouble, seal up entry holes and maybe put up a nest box outside. For more about tree nesting and dreys, check out this squirrel habitats overview.
Types of Squirrels and Where Each Lives
Squirrels make their homes in trees, on the ground, and way up in forest canopies.
Each group has species that fit right into certain habitats, climates, and food sources.
Tree Squirrels: From Forests to Backyards
Tree squirrels always pick trees for nests, using leafy dreys or cozy tree cavities.
In North America, the eastern gray squirrel (Sciurus carolinensis) and fox squirrel thrive in mixed hardwood forests and city parks.
You’ll spot gray squirrels in suburban yards, munching acorns, birdseed, or whatever they find in gardens.
Over in Europe, the Eurasian red squirrel (Sciurus vulgaris) prefers conifer and mixed woods, usually nesting in tree holes.
The American red squirrel (Tamiasciurus hudsonicus) sticks to boreal forests and fiercely guards its cache of cones.
Smaller species, like the Indian palm squirrel (Funambulus palmarum), live in both cities and rural spots in India, nesting in palm trees or even roofs.
Tree squirrels climb like acrobats, using bushy tails for balance and signaling to each other.
Ground Squirrels: Prairie, Desert, and Grassland Homes
Ground squirrels dig burrows and stick to open places.
The thirteen-lined ground squirrel loves prairie and meadow grasslands, building shallow burrows for shelter and hibernation.
California ground squirrels live in scrub and grassy hills, often around farms or roads.
Desert species, like the white-tailed antelope squirrel, survive on hot plains by hiding out in cool burrows.
Big relatives such as marmots and prairie dogs live in mountain meadows or grassland colonies, where their burrows become massive tunnel networks.
Chipmunks also dig ground burrows but climb trees for snacks when they feel like it.
Ground squirrels stash food in their tunnels and keep watch for predators using open sightlines.
Flying Squirrels: Life Among the Treetops
Flying squirrels don’t actually fly—they glide, using a stretchy skin flap called a patagium that runs from their wrists all the way down to their ankles.
The northern flying squirrel (Glaucomys sabrinus) hangs out in northern conifer and mixed forests across Canada and the northern U.S. You’ll usually find them nesting inside cozy tree cavities.
On the other hand, the southern flying squirrel (Glaucomys volans) likes eastern U.S. woodlands better. They often take over tree hollows or even move into bird boxes if they get the chance.
These little guys come alive at night, snacking on nuts, fungi, and insects. Spotting them during the day is tough, but if you look closely, you might notice shredded bark near a tree cavity—that’s a pretty good hint they’re around.
Gliding helps them slip between trees without making much noise. It also gives them a great way to dodge predators lurking on the ground.

