Learn about insect habitats. Insects live in every environment on earth, from tropical rainforests to hot deserts to cold, high altitudes. In forests some insects build nests in leaves using larva silk. Bees build wax hives and wasps build paper-like hives. Insects also build burrows and mud mounds to house their colonies. Dragonflies live in freshwater habitats, and some parasitic insects live on animals.