The royal couple will raise their bundle of joy in apartment 1A of Kensington Palace, which has more than 20 rooms. It's also the same palace in which William grew up, noted for its ornate interior design and picturesque gardens.
"I'm sure Kate will enjoy sitting out there with the newborn baby in the sunshine, and there's also apparently a rooftop garden as well in the palace and the views from that must be absolutely stunning," ABC News royal contributor Victoria Murphy said.
And it's at Kensington Palace where Queen Elizabeth is expected to meet her great-grandson for the first time. The baby is the queen's third great-grandchild.
Celebrations continued today with gun salutes by royal artillery companies to honor the birth. Riders in uniform trotted past the palace to Green Park, where six field guns fired 41 blank rounds.
London's landmarks, including the London Eye, lit up Monday in the national colors of red, white and blue, and the city had a party atmosphere with celebratory crowds gathering outside Buckingham Palace.
The other important aspect of the royal baby that has kept the masses guessing is the name. When William was born in 1982, his parents didn't reveal his name until a week later. His father, Prince Charles, was a month old before his name was made public.
Business for bookies in the U.K. was booming Monday as thousands placed bets on the name, with the favorites being George, James, Alexander, Louis and Henry.
"Never underestimate the British public's obsession with the royal family," spokesman Alex Donohue of British gaming company Ladbrokes told The Associated Press.
The company received about 50,000 bets after Kate went into labor, the AP reported.