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Animal farm is a story of how a revolution went wrong. The farm is a metaphor for a country. The animals on Manor Farm have a revolution and kick out their selfish ruler, the farmer. The Pigs become leaders. The pigs promise that everyone will share everything equally (this is communism). In the beginning this is a genuine ambition, but once Snowball is chased out, Napolean gradually takes the farm's good things (apples, eggs, the farm-house etc) until the animals are no better than before the revolution.
So your answer is the animals' living conditions change during the book. After the revolution, they start off as free citizens and share the fruits of their labour, they work hard, but they own their work. The more they work, the more they progress and the better their lives become. But Napolean, using the brutal dogs, gradually steals their freedom and the benefits of their work.
Their equal society is corrupted and the pigs (politicians/rich people) take an unfair share of the community's profit. The animals (normal working people) work for nothing except their basic needs and the greedy pigs consume all the luxuries.
Consider this quote from Dom Camara, Archbishop of São Paulo "When I fed the poor they called me a saint. When I asked, "why are the poor hungry?", they called me a communist."
While the pigs and dogs live in comfort in the farmhouse, the pigs have started sleeping in beds, the other animals live in spare conditions. It is very cold in the winter, and food is scarce.
While the other animals live with reduced food, the pigs get milk and apples.
The animals work long and hard, giving up their rest, while the pigs just remain idle.
Napoleon is cruel to the other animals, when the hens object to their eggs being sold, and they stage a protest, he cuts off their rations until they give in and allow the eggs to be sold.
The animals live under a constant threat of death.
"The years pass, and the animals lead harder and harder lives, though at least no animal is lorded over by a human. Then, one day, Napoleon emerges from the house on two legs. The sheep's traditional chant of "Four legs good, two legs bad" has now, somehow, been changed to "Four legs good, two legs better."
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