It lives in my hall closet or my bedroom closet. Hubby is a stickler about that particular thing. I honestly don't care either way, so long as I don't stub my toe.
Ours has a closet to live in (actually one on the porch) but for a long time in our previous place it was just kind of out and in the corner. Sometimes it's hard to find a spot for a vacuum in a smaller apartment.
I keep mine in the closet. My mom left a vacuum in the living room once and I ended up breaking my toe on the recliner because I was avoiding the vacuum. no more broken toes for me.
Ours is in a nicely hidden spot in our living room. It has a place in the closet but we use it so often that we usually just store it in the living room.