Some novels make up their settings, while others use real-life places.
There is a danger in using real-life settings, in that authors have to get them right (or acknowledge when they have taken artistic liberties), as readers like accuracy … especially in settings they know.
I live in New Zealand and I mostly read Christian fiction.
Most novels are set in the United States, often in small towns (real or made-up). The result is I’ve read very few novels where I know the setting. But I’d like to read more 🙂
My absolute favourite real-life setting is Hobbiton, which has the curious distinction of being a made-up setting (in The Hobbit and Lord of the Rings by JRR Tolkien), and a real-life setting in Close to You by Kara Isaac. Yes, Hobbiton is now a real-life tourist attraction not far from where I live. My husband and I will occasionally take a drive to have brunch at The Shire’s Rest Cafe, which serves an excellent Second Breakfast. No, we don’t do the full tour (that costs money). But it’s a great place to stop for lunch.
Another favourite setting—and one which gets used more often than New Zealand—is London. I lived in London for ten years, so I enjoy novels with a modern London setting, such as London Tides by Carla Laureano. I also enjoy Regency romances and historical romances, many of which feature London as a setting.
And one final favourite setting is Aberystwyth, Wales, the main setting for A Song Unheard by Roseanna M White. Why Aberystwyth? Because it’s where I was born, and it’s a unique setting. I haven’t spent much time in the city, as I left Wales and emigrated to New Zealand as a pre-schooler. So I enjoyed seeing it through the eyes of Roseanna M White’s fictional characters.