Until the very end of the story, we don't get to realize that the narrator is a wolf, and her husband a werewolf. This adds to the suspense of the story, and we eventually get to understand the roots of her behavior: a werewolf is something in between a wolf and a human. Therefore, it is something unclean and uncanny, even from a wolf's perspective. A pack of wolves has to kill him because he, being half human, is dangerous for them. His wife has to be a part of this even though she still loves him.
One place is probably more home which is is new york home. But depending how long he has stayed on the island his home as probably developed into the home on the island. It really depends.