The Rise of Ethral
No dragonborn are native to Fallcrest, but travelers occasionally pass through and take up work for a time, especially as bodyguards or caravan guards. The Halfmoon halflings, House Azaer, and the importer Naerumar have work available for a capable adventurer.
Dragonborn are more common in the south and could have travelled from there as a member of a caravan.
A fair number of dwarves live in Fallcrest, so a dwarf character could easily be a native of the city—perhaps a relative of Teldorthan Irontooth. If not, the nearest dwarven homeland is Hammerfast, a week of travel distant. Merchants and crafters from Hammerfast travel to Fallcrest to trade or work, lodging in one of the local inns for a few weeks.
Mithralfast is home to a different sort of dwarf but is only about three weeks of travel. Mithralfast dwarf are much more militaristic than their merchant cousins in Hammerfast and are slow to let them forget it.
Much like the dragonborn, there are no goliaths native to Fallcrest. They instead hail from the peaks of Dawnforge, high above the dwarven hold of Hammerfast. The goliaths that do come down from the mountains are usually outcasts or deviants of some sort. As a result of this most goliaths are regarded with a guarded caution at best.
A small number of half-elves reside in Fall- crest or the vicinity. Most are well-off farmers or herders living in the Moon Hills near the town; the rest are expert artisans—jewelers, tailors, or woodworkers—in the town. A half-elf player character can be the child or relative of a Fallcrest family.
Halflings are the most numerous people in Fallcrest aside from humans, and they come from any walk of life. A Fallcrest native might be related to the Halfmoon family, the Ostermans of the Silver Unicorn, or the Thistletons of Fallcrest Stables. Halflings descended from the traders who pass through Fallcrest can be members of the Swiftwater clan.
High elves are not often seen in Fallcrest. Some of the old manors in the Moon Hills and the nearby parts of the Vale were once the homes of well-off high elf families; a player character high elf might hold the title to an abandoned estate a mile or two out of town, which provides a good reason to call on Lord Markelhay (and earns the enmity of Armos Kamroth, who wants the land for his own).
Most of Fallcrest’s people are human. Characters with rural backgrounds likely grew up on the farms in the nearby Moon Hills. Characters with an urban upbringing might be the children of well-off landowners such as the Kamroths, or ruffians and sellswords who had a hard childhood in Lowtown.
Two tiefling families and a few individuals live and thrive in Fallcrest, including the Azaers and the Naerumars. Tiefling outsiders are welcome in Fallcrest, though the regard they had directly after the Gor’ul War has faded.
Elves are also scarce in Fallcrest, but a small number reside in and around the town. Ressilmae Starlight of the temple of Sehanine might be a relative or an old friend of a wood elf character. Elves from outside Fallcrest might belong to the Woodsinger clan from the Harkenwold Forest.