Should I reside in another area near my wife's family, or should I remain next to my parents' house, given the current distance from my wife's family and her work, the absence of a driver, and my wife's inability to drive?

If your move to a distant residence negatively impacts your dutifulness to your parents, then do not move. Accompany your wife to visit her family according to your ability, while observing customary practices. If your move does not affect your dutifulness to your parents, and your wife needs to visit her family due to illness or old age, then it is preferable to reside near them. In all cases, seek Allah's guidance through Istikharah before proceeding.