Gypsy settlements tend to be formed from clusters of related Rom. In rural areas settlements are most commonly located on the edge of villages. Traditionally Gypsies used to make their own sunken mud houses and cave houses. Today, prosperous Gypsies may buy old peasant cottages. Poorer Gypsies will still live in hovels. In towns Gypsies are normally placed in municipal housing. Whenever Gypsies move into an area the Magyar residents tend to move out, thus creating de facto if not de jure ghettos.