Which best compares habitat and niche? Niche is a place in which organisms live, and habitat is the way in which an organism fits into its habitat. Habitat is a place in which organisms live, and niche is the way in which an organism fits into its habitat. Habitat is a group of organisms that live in an area, and niche is a specific species that lives in that area. Niche is a group of organisms that live in an area, and habitat is a specific species that lives in that area.