God has always desired to dwell in the midst of His people. The Tabernacle was at the center of the camp of Israel and God said “and let them make me a sanctuary, that I may dwell in their midst” (Exodus 25:8 ESV).
When the House for His dwelling was made permanent, it too, was in the midst of the people; that is, within the City of David (not on a prominence to its north).
You can see this expressed in the following examples of Hebrew parallelism in your Bible:
Isaiah 66:6—'A voice of uproar from the city, a voice from the temple, The voice of the LORD who is rendering recompense to His enemies’ (NASV). The 1917 Jewish JPS Tanakh renders it ‘Hark! an uproar from the city, Hark! it cometh from the temple, Hark! the LORD rendereth recompense to His enemies.’ OR, look at
Psalm 20:2 ‘May He send you help from the sanctuary, and strengthen you out of Zion.’
Quite clearly the 'sanctuary' (temple) was viewed as being one with the city and inseparable from it. It stood in the midst of the old City of David (also known as Zion), as its heart. God in the midst of the people.