A person should always reside in Eretz Yisrael, even in a city that is mostly populated by gentiles, and he should not reside outside of Eretz Yisrael, even in a city that is mostly populated by Jews. The reason is that anyone who resides in Eretz Yisrael is considered as one who has a God, and anyone who resides outside of Eretz Yisrael is considered as one who does not have a God. As it is stated: “To give to you the land of Canaan, to be your God” (Vayikrah 25:38) Ketubot 110b:23