McGill's residence system houses approximately 3,100 undergraduate students and some graduate students.  With the exception of students returning as "floor fellows" or " dons ", few McGill students live in residence (known colloquially as "rez") after their first year of undergraduate study, even if they are not from the Montreal area. Most second-year students transition to off-campus apartment housing. Many students settle in the " McGill Ghetto ", the neighbourhood directly to the east of the downtown campus. In recent years, students have begun moving out to other areas such as Mile End, The Plateau, and even as far as Verdun because of rising rent prices.