It's the informal, familiar way of saying "you live" in French, and it's used when talking to someone you know well, like a friend or family member.
Here are some examples of how to use it in a sentence:
* "Tu habites où ?" (Where do you live?)
* "Je sais que tu habites à Paris." (I know you live in Paris.)
* "Tu habites toujours chez tes parents ?" (Do you still live with your parents?)