Translation:They are living in that house in the future.
The "correct answer ": "They ARE living in that house in the future" does not make sense i.e. is not correct in English. We would say, as you have done "They'll live in that house in the future" or "They are going to live in that house in the future". The Norwegian verb is in the present tense, but the sentence can only be rendered in English correctly by using a future tense verb. Presumably you can use the present to express the future in Norwegian, but if so I don't remember them teaching us that yet have they? Maybe I've forgotten if they have.
It definitely does work in English.
"I'm going to the house on Monday."
"You're working tomorrow."
"He's watching the movie tonight."
"She's eating popcorn for breakfast tomorrow."
"They are living in that house in the future."
BTW you can use the present to express the future in Norwegian, yes.
The examples you have given are all valid uses of the Present Continuous because they refer to plans someone has made for a specific point in the near future. The phrase 'in the future' is not specific: it could be at any future time. I don't think you would say "She's eating popcorn in the future" or "He's watching the movie in the future." Not in British English any way!