This is the 3526th most frequent Spanish word.
habita
"Habita" means "inhabits" or "lives in."
In this context, 'habita' is used metaphorically to describe something existing or 'living' within someone's mind or imagination.
En su imaginación, habita un mundo lleno de color.
In his imagination, a world full of color resides.
Used here, 'habita' suggests that the building is 'situated' or 'exists' prominently within a location.
Este edificio histórico habita en el corazón de la ciudad.
This historic building resides in the heart of the city.
The verb 'habita' here conveys the meaning of 'inhabit' or 'live in', referring to the wolf's natural living areas.