故里 is literary and emotional — used in poetry, eulogies, and the set phrase 荣归故里 ('return home covered in glory'). For everyday 'hometown' use 老家 (lǎojiā) or 家乡 (jiāxiāng).
memory
故 'former' + 里 'village/neighbourhood' = 'the village of old' — the place you came from.