Habitas by itself indicates a statement: you live. The -ne ending turns it into a quesion: Do you live? It is used when a question word isn't present.
Volgav vitsenanieff nivya kevach varatsach.
Thank you - is this suffix used on other verbs? Do you say "Dormisne in urbe?"
Yes, the -ne can be attached to any word (not just verbs) at the beginning of a sentence to indicate a yes/no question.
-ne is an interrogative enclitic.