How IP geolocation works
Every public IP address belongs to a network that announces it from a physical place. Geolocation databases map those announcements to a city or region. Accuracy is typically city-level: good enough to localize content or spot a suspicious login, but it will not identify a street address.
Hosting and VPN addresses locate to the data center that runs them, not to the person browsing through them. If your own IP shows a different city than expected, your carrier or VPN is routing you through it.