Since this question is placed under "Literature," it suggests that the answer must come from a literary source. When thinking about one's hometown, one might muse upon the people, popular landmarks, or nicknames for the town. Then, one might apply some type of figure of speech in order to create a unique name because figures of speech use the five senses to describe smell, touch, taste, sight and sound. Another fun example might be to use a palindrome, a word spelled the same way backwards and forwards. My home town has a Shakespearean festival each summer at the local university. This festival creates many jobs for actors from the community and for professional actors from all across the country. I might call my home town "Shakesville," or "Bard-town" because much of the economy for the town focuses around that festival.
I live in an area where every year the USA Cup for soccer youth is held with thousands of participants arriving from all over the world. The event is popular with parents and they often host foreign soccer teams in their homes. Maybe re-name the area World Youth Soccer and recognize the sport, the athleticism, and the good sportsmanship of youth who do not even speak the same languages, but manage to get along with each other for a whole week. Perhaps governments of the world would take notice and learn from the youth of the world.
I live in a desert town where the wind blows strong and the sun shines most of the time. I might rename my town, Desertwind, or something like that.
The largest industry in my area is aerospace. Moon City or something along those lines might make sense too.
Whatever name I chose, I would consider the nature of the place and use that consideration to guide me.
My town is named after an animal. Since there are none of those animals around, I think the name is kind of nostalgic. I would like to keep it. However, if I were to name the town something it is today, I might name it Sportsville, because everyone seems really into sports!
I live in an area of North Central Florida that is known as the "Fern Capital of the World." Fern is a big business here, and there are several small towns nearby that could easily do with a name change--possibly to Fern City.
If i were to rename my town, i would probably name it Tallscape, reasons being the buildings around are fairly big.