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Residential differentiation 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 genera