This paper asks the question – who moves into what kinds of neighbourhoods and what kind of residential sorting is occurring in the ethnically diverse metropolitan region of Los Angeles. The study examines residential selections across a typology of neighbourhood types in the Los Angeles metropolitan region using residential mobility data from the Los Angeles Family and Neighborhood Survey (LAFANS). Similar to recent work in the UK and Canadian contexts, ethnic groups demonstrate moderately strong relationships between their socio‐economic statuses and their neighbourhood contexts. Both behaviour, that is, actual moves and preferences, are consistent with a tendency to increased mixing and declining segregation in the residential mosaic. In particular, the expressed residential preferences and the choices of these households provide an explanatory context for the overall decline in segregation.