Residential differentiation is the result of much more than simply the decisions made by individuals. There are many other factors that cause residential differentiation such as income, size of family, ethnic background of the family, as well as many other outside influences.(Forster, 1999, p95) Residential differentiation also plays an enormous part in terms of individual and house hold wellbeing. This essay will attempt to outline the causes of residential differentiation and the role it plays with respect to the wellbeing of individuals and households.
Studies have found that each Australian city (and other overseas cites alike) have clear sectors of high and low socioeconomic status.(Forster, 1999 p96) It was found that the age structure and household composition of Australian families varied in distance from the city centre. It was clear that there were a higher proportion of elderly people living in the inner suburbs and a higher proportion of younger families living within the urban fringe. This was said to be a result of housing age, structure and tenure, but mainly as a result of the changing needs of a family as it ages through the family cycle.(Forster, 1999 p98) Younger families generally seek houses with more space for children, whereas elderly people don't generally require as much space as their children no longer live with them. Elderly people are generally less mobile and therefore are more likely to live in inner suburbs due to proximity of health services, shopping complexes etc. .
These sectors were found to form concentric rings around the city centre. It could also be seen that within these concentric rings ethnic groups had gathered in the same specific areas to form "patches."(Forster, 1999 p96).
There were three main explanations in terms of the cause of residential differentiation during the 1970s. The first of which was the behavioural explanation. Supporters of this view believed that these distinct patterns formed as a result of household preference and choice.