Where do squirrels nest?

Answer

According to the West Virginia Wildlife Magazine, squirrels make tree cavity dens and leaf nests which are built inside trees or up on branches located very high off the ground. Tree dens offer greater protection from the rain and other elements, but leaf nests are most common in woods where there is a shortage of den trees such as oaks, elms and beech trees.

Some squirrels use ground holes as a quick exit from predators such as owls and foxes. They can also be used as temporary emergency shelters when their nests are destroyed by predators or when they need to stay hidden.

Reference:
Q&A Related to "Where do squirrels nest?"
In trees. Sometimes they use abandoned birds nests.
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Squirrels build their nests in trees during the summer months, and often live in cavities of
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Squirrels like to sleep high up in trees on branches. They sleep very lightly and can bolt at any sound of danger. If you watch carefully you can see them breathing.
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Owls are cavity dwellers. They live in hollow logs or hollowed spots in old trees, on ledges of cliffs, in underground burrows, in old and abandoned houses and buildings or old barns
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