The Elder Scrolls IV: Oblivion/Houses

Home ownership basics
Every item in Oblivion has a certain weight, intended to limit the number of items you can carry at once. However you can't leave them in containers, because their contents get reset over time, and you can't drop them on the ground or in a building because NPCs might take them. So what's an adventurer to do? The answer is buy a home, your own little corner of the world to store items in and hang out. They're expensive, but it's totally worth it to have at least one.

Items in your house will never be lost by container resets or picked up by an NPC, so you can decorate your home however you like it and it will stay that way.

Imperial City house
Ironically, the cheapest and smallest home is the one in the biggest city in the game. A mere 2000 gold will net you this house. This is actually just a shack in the waterfront. It's an ideal location for early Thieves' Guild activity and very close to the big city.

How to Obtain
Talk to Vinicia Melissaeia in the Office of Imperial Commerce in the Market District. Ask about "Buy a House in Town" and she'll tell you about the lovely little shack. Accept the charge of 2000 gold and the home is yours.

If you want to furnish it then you'll have to buy furniture from the Three Brothers Shop (in the market district.) It's 732 for each piece (3660 if you totally pimp out your shack.)