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A home directory is a file system directory on a multiuser operating system containing files for a given user of the system.
A home directory is also known as a login directory.
Techopedia Explains Home Directory
As a repository for a user’s personal files, directories and programs, and a default directory for a user who logs in, a home directory helps to provide a setting for individual users to navigate the network, through a disk folder that contains the user’s personal files. This takes various forms; for example in Windows, a home directory is accessed under “Documents and Settings.”
In complicated network systems, a home directory is a way to keep files and folders straight for multiuser access. Each user is assigned a home directory, which he or she works from to access other elements of the network.
