Woodlands
A woodland habitat is the gray squirrel's preferred habitat. Squirrels will choose forests with a mix of coniferous and deciduous trees when available. This environment provides ample food sources during all seasons. These trees are also where the squirrels build their dens.
Parks and Yards
Due to increasing loss of habitat, squirrels are often found in parks, yards and other residential areas. Since squirrels spend most of their time in trees, they'll choose areas that have some trees available for food, nesting and protection. Many squirrels take advantage of the bird feeders some people hang outside their homes as well as nesting boxes if they are available. Squirrels also take advantage of fruit trees and flower bulbs in yards and parks for food.
Homes
Although squirrels typically prefer the outdoors, they have also been known to nest in garages, attics and chimneys. Because they carry rabies, this can be dangerous to the humans living in the house. They often gnaw on electrical wiring and pull insulation out to make their nests, which can cause damage to your home. If you find a nest anywhere in your home, it's important to call a professional to remove it so you or your family members don't get bit.
Nests
Wherever they call home, squirrels live in nests. These nests are usually in trees, although this is not always the case. Squirrels require several different nests throughout the year. In winter months, they build nests high enough to avoid predators, but low enough to avoid severe weather. These winter nests are made from many layers of materials to provide insulation and make the nest waterproof. Squirrels always build a nest in a tree that is adjacent to other trees to allow for easy nest entry and for added protection against wind. Summer nests are located in the same area, but are typically airier and cooler. Female squirrels also require a nest separate from the male to give birth and raise her young.