I know other people have replied to this as well, but yes. Your character's living space has everything to do with your character. It shows how their personality and style comes out. It gives us a greater insight your character. Plus if any of the other players has their character walk into your room they know what it looks like and keeps people from messing up.
Furthermore the GM asks for it so you add it. It is not that big of a deal. I actually liked adding it, because it gives all these little tiny bits of information that you can't write down in another way and it gives more of a feeling to the character. They become an actual person so to say. Otherwise you could say a lot more stuff in the CS is useless. Like Gender, Age, Birthday....
I have had rps were I had to write down my characters favorite color, animal and number. His favorite and least favorite foods and drinks. Yet you do it, because it is asked to do so by the GM. And maybe it doesn't make sense to you or seems unnecessary to you, but someone else might think it comes in handy.
Besides it is also nice to know what kind of enviroment your character likes, where he feels save and comes to rest. (since obviously you have a living space that you like and not one you dislike) so it IS adding information to your CS
In my other rp I have added Medical History to the CS (well still have to do that, actually) because it would be easier. (Something which I think should maybe be interesting to know in this rp as well for the physician?
@Lady With Class )