Preferably in their apartments.
No, seriously now. I've got a friend who 5 years ago decided that he needs "to straighten his life out", and now he has a huge house in SV and is lead engineer at Apple. That's really fine, and obviously not everyone can have such a life. And people will really have to look inside themselves, and ask themselves what it REALLY is they want. If they want status and big houses, then they better be extraordinary smart & disciplined and/or rich. Me, I just want an office where I can do my thing, not being responsible to anyone else but myself.
A solution to this dystopian future would be the basic income as proposed in Switzerland. This is the only way in my opinion to make sure that a master/slave relationship will not exist, and people are really paid what the job is worth, unpressured by the need to survive.