>>88567855Silent Hill is the town itself. The town itself is actually "normal" but due to cult activities (and some significant demon summoning [and some centuries of human sacrifice by indians on an already "powerful" spot]) it's also a mass of paranormal energy, essentially.
In Silent Hill 2 specifically, the town is kinda asleep paranormal-wise but it gets woken up by extreme guilt. Whenever this happens, an alternative (empty) version of the town gets created and personalized to fit the traumas of whomever's being drawn to it. This is why Eddie and Angela have their own variations of this place while never seeming to see the monsters you come across.