Balmora or Vivec.
Balmora really feels like home because it was the first real town I settled down in.
And Vivec is just awesome in its sheer size. Lots to explore.

i live in skaal village in solstheim.And why?^^
Becouse i love solstheim.And i love the design of the houses.i just feel home there.I remember moving from caldera (shenks shovel)to skaal village.Move every stuff i have x) good times.love this game<3

Edit:Oh i didnt read that your favorite city D: i just read where is your home.... sorry