While it is true that Falmea has a house in Fire Cat alley it doesn't necessarily mean she is from wizard city. Obviously the teachers need a place to live in Wizard City while they teach, after all Headmaster Ambrose has his tower there in the commons.
these are where they all came from moolinda wu came from mooshu ambrose is from avalon halston is from celestia if you recall seeing frogs like him in celestia greyrose probably from where the gobblers came from cyrus and malistare either from wizard city or dragonspyre Dworgyn is from marleybone sense in the level 68 death quest katzenstein says they used to know each other also famela is from wizard city or avalon because i seen ladies who give spells who look like famela so those are my opinions and facts of where they came from.