Every Christmas we hear the story of how Joseph and Mary journeyed to Bethlehem to be registered in the census decreed by Caesar.
Some stories mention they traveled by donkey which is not mentioned in the Bible. When Joseph and Mary arrived in Bethlehem they were turned away from an inn and had to sleep in a stable where Jesus was born. Some stories even say the stable was where the inn keeper allowed travelers to put up their animals during their stay. Akin to a modern-day parking lot.
The Catholic church has built a monumental church at the supposed site. A cave!
Matthew has a sketchy account, but Luke goes into a bit more detail except where the actual birth occurred.
I believe they showed up at their ancestral home to stay with relatives on the second floor. Because in ancient Palestine the ground floor was used to house a few domestic animals and would have a manger.
Because they arrived later then other family members and would have had to displace some. Mary was so near her "time" that they probably were put up for the night in the stable area (the ground floor) and she gave birth before other arrangements could be made.
"So it was, that while they were there, the days were completed for her to be delivered. And she brought forth her firstborn Son, and wrapped Him in swaddling cloths, and laid Him in a manger, because there was no room for them in the inn.
" [Luke 2:6,7]
Her days, all 270 of them, were complete and she gave birth in the stable area of the ancestral home because there was no room in the guest chambers upstairs. It is always assumed that Jesus was born in a barn because of the "manger" or feeding trough. There is also no mention of animals being present and because the shepherds were still in the fields there would be no reason to bring an animal into the stable area of the house except to prevent theft.
The website -> http://www.christiananswers.net/q-abr/abr-a012.html
"A small number of flock animals were housed, not in attached exterior sheds, but inside the house in one of the ground floor rooms. Here, animals, tools and agricultural produce were stored. Here, too, food was prepared and possibly consumed. Family sleeping quarters were on the second floor (an upper room). By being inside, the animals were protected from the elements and theft. In addition, their presence provided body heat for cool nights, access to milk for the daily meal and dung as a critical fuel source."
The Greek word translated inn [kataluma, pronounced kat-al'-oo-mah; from G2647; properly a dissolution (breaking up of a journey, i.e. (by implication) a lodging-place:--guestchamber, inn.] You can take your pick of meanings, among them inn or caravansary. Jesus spent His first and last night in the "kataluma" which was probably the "upper room" in a house. [Luke 2:7 & 22:11]
In conclusion, the long and short of it is that you could say that Jesus was born in the stable area. It would appear they stayed downstairs in the domestic stable, still within the ancestral home, where a manger was located. The shepherds probably visited the Baby Lord Jesus there.
In His service