That sounds more like you're trying to use the present continuous, which would require the present tense of the verb stare + the gerundio of the verb: Dove stai vivendo. I would still just use Dove abiti when talking to someone though.. Shorter is (most of the time) better.
As I understand it (and feel free anyone to step in and correct me!) the abiti's in these sentences are two different words that are homonyms of each other. In the first sentence, "Sono i miei abiti," 'abiti' is the plural of 'abito,' or 'suit' in English (the kind you wear), and so means "suits"; in the second, "Dove abiti?" the abiti is the second-person singular conjugation of abitare, to reside or live (at/in), and means "you live." So to sum up, the first sentence translates to "They are my suits," and the second translates to "Where do you live?" (or "Where do you reside?").
Hope this helps!