User blog comment:Thedoucheinthenorth/A question of morality/@comment-4502503-20121212031059/@comment-4502503-20121212034917

Living space. The Dark Elves needed somewhere to go they got the only open place in Windhelm. Since, the majority of Dark Elves came to Skyrim after the eruption of Vvardefall they went to the closest city they could. Which just so happened to be Windhelm. The Argonians simply got there to late. All of the residences in the city were taken up. To answer the question of the Khajiit is simple. They prefer to live in caravans. They are a nomadic people thay enjoys journeying from place to place.