On Vvardenfell, I prefer Balmora even though I like House Redoran more.
My old characters used to live in Dura gra-Bol's house but now my base of operations is Caius Cosades' little 'bed and basket'. Not much of a storage, so my artifacts are stacked on the ground, surrounded by Caius' moon sugar and skooma pipe. <_<
Hahaha, I camp out in Caius' place too. Small, but I like it! I like arranging unique swords on the bench by the door, and artifacts on the shelf over the chest; books get stacked on the table. Towards the end of the main quest it really starts getting cluttered in there. If Caius ever comes back to Morrowind he's gonna be like, where the hell is my floor.
I like Balmora as well; it's probably my favourite city to operate out of. There's a Fighter's Guild nearby, a handy Mage's Guild that I tend to hang out a lot in, some good bars and businesses for supplies or training, etc. It can be very pretty too; I like the river and the park-like plaza by the Hlaalu residences. If I were to pick a favourite city for pure atmosphere though, I've gotta go with Ald'ruhn. I love that place! The dust storms, the architecture, the thorny plants that intrude everywhere... and then there's Under-Skar, the giant hollowed out Emperor Crab shell that seems home to so much secretive Redoran intrigue. I've got a lot of fond memories of tramping all over Under-Skar on missions for House Redoran. Ald'ruhn just feels very strange, very much a living, breathing city. Love it!
Vivec would be a close second. That place is huge! I always feel overwhelmed by the size of the cantons. It's my favourite city to be a tourist in, because there always seems to be so much happening there, much of which you might not even be aware of
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