I personally would live in Ocarinas of Time Castle Town. I think it's so lively and cool there. A close second would be Windfall Island for the same reasons.
Ah, choices choices! I would have to say Windfall Island because I like living around people, or else Castle Town in Twilight Princess, or else Skyloft, or Clock Town, or, or, or, AH!!!
Skyloft is, in my opinion, one of the awesomest towns in Zelda history, so that's my choice. It just has a great atmosphere to it and I could chill at the Plaza, the Bazaar and the Knight's Academy all day long.
I would choose Skyloft because if I lived there I would of course have my own Loftwing! I would love to have a giant bird friend to fly around on! Plus jumping off the platforms to go flying would be sweet too. Good thing I an whistle! (I know some people can't).
Forsaken Fortress because it will improve my stealthing skills and increase my courage.
Also because it keeps your adrenaline running so you want be needing go to sleep!
Another one is probably is Koriki Village from OoT because of the sweet and lovley music and being close to nature and the Deku Tree (my solemate)