Yes, balcony will not work, far too cold. This would lead to many problems, with the flowers more or less turning into compost rather than drying. And unless you want all your clothes to smell like cannabis, the living room is your best option. Remember, you will need good air circulation for proper drying to occur and putting your flowers in a cardboard box may not be ideal. I don't know how much you have to dry, but I find hanging the branches on wire clothes hangers works well, allowing for excellent air circulation. It is also relatively simple to construct some poles or ropes across the room to hang your wire coat hangers on. Another good option is an indoor clothes drying rack, either to hang the coat hangers on or the branches themselves. Also, try to dry your flowers in dark conditions or away from direct light, as direct light on your flowers when drying or even after they have dried, will cause massive breakdown of the THC.
Hope this helps,... Organoman.