I can't believe that Pseron Wyrd, Lachdonin, and I all agree on something. As both have pointed out, the need for a "personal space" and the nature of that space is heavily dependent on the character.
To give a few examples and extremes of "primary residence", I've had a couple of Morrowind characters spend most of the game working out of Gilnith's meager shack in Seyda Neen. Other characters have taken over and used any of half a dozen bandit caves as their primary residence, while more than one have occupied one (or more) of the old Dunmer Fortresses. With a crafting mod to construct furniture and other items, a couple of them heavily refurnished and redecorated the interiors into truly cozy accommodations. Others were quite satisfied with the rather Spartan furnishings. One character began the task of clearing and occupying ALL of the old fortresses (with Propylon Indexes to link them), but only really got 3 semi-done and a couple of others started. Some have occupied homes in various cities, and I've utilized a few housing mods that offered relatively "modest" accommodations; in most cases, the mod-added "over the top" mansions really don't fit into the game setting well, and tend to throw "extras" at you that are worth more than the cost you pay for the residence. A couple of characters built House Strongholds, although I never had a Redoran character build one. Then I've had a few characters who were constantly on the run, nomadic, or otherwise not tied to any one place.
One character used an abandoned fishing shack along the Bitter Coast, which was rather secluded but a reasonable trek to a village with boat service. Another few characters took over a house in Balmora, which has a wide range of transport options and merchants available. Others found places in other towns and villages. Still another cleared out a "basemant" apartment in one of the Vivec cantons, which has a beautifully paneled and furnished bedroom at the back, despite the awkward looking statue in the main room; the smell wasn't too terrible as long as you kept the front door closed.
The character's reliance on the residence has also gone from one extreme to the other, with several not having any, a number of them having a place "in theory" but seldom ever going there, while many have returned "home" for the night more often than not, some only venturing out for more than a day when there was a definite need (I use a mod to adjust the timescale, so it's a 3-4 hour day, not 1).
In contrast, the Player Homes in Oblivion were rather restrictive, since it took a while before you could afford one, and the choices were extremely limited. Thanks to the way the Waterfront district was separated from the IC, and the way that travel options were NOT integrated into the game world, it really didn't matter where you located yourself, everything was awkwardly placed to travel to or from on foot, yet only a few button clicks away by FT. Taking over a cave or ruin in the interim wasn't an option, because you'd have to re-clear the site any time you were away for more than 3 days. Meanwhile, anything you left there would vanish forever. I was heavily disappointed with that whole 3-day guaranteed respawn thing; it should have been a small CHANCE of a respawn every 3 days, so most places would still be the way you left them for a few weeks, and "medium value" items could be left behind with some hope of recovering them later. In the long run, it would still have solved the issue with having to keep all of your previous changes in memory and the saved game files, since the ones you didn't revisit would eventually revert.