"Habiter" is a bit strange for English-speakers because we always say "live in". However, in most cases, "habiter" is equivalent to "inhabit". The exception is with cities and countries. So, for example: J'habite un apartement, J'habite rue Rivoli, but j'habite en Australie.
N.B. In most cases, you can use habiter with the preposition. So e.g. you can say J'habite dans un appartemente; you can say either J'habite Paris or J'habite à/sur Paris. There's arguably a slight difference in emphasis if you leave out the preposition (a bit like you're saying "I am part of Paris/this appartment"), though it's not clear that all speakers/writers really make this distinction.
In terms of construction, habiter is similar to English inhabit, but with the caveat that inhabit is quite a rare word in English.