Translation:I live in Osaka.
I have been taught the progressive form For example: "I am going to school", as opposed to, "I go to school" in Japanese is formed by te-form + imasu, or te-form + iru. So the above interpretation of the Japanese おおさかにすんでいます。Should be translated into a progressive form in English.
In this sentence, に is the particle which indicates the target location of the verb, すんでいます.
The verb can be broken down into three parts:
・the root verb: 住む(すむ) meaning "to live (in)/to reside"
・the て-form: 住んで which can have a variety of grammatical functions, but combined here with:
・います, makes the polite present progressive form of the verb.