Patterns of residential differentiation stem from the dynamics of urban social interaction that develops within the structural frame works of socio-economic background, demographics & culture (ch. 5) Patterns of relationships, marriages and social interaction. How groups attempt to exert control over and exclusivity within a particular geographical area. Territoriality is more important in larger, more diverse cities with less rigidity in social structures. Knox and mccarthy identify 4 key features: social status (class) dr. Wilton will focus on these two: race/ethnicity, household type, lifestyle. Class formation= consciousness of class location based on everyday life. Social class/control over economic resources plays a role in residential differentiation. Households make selections from market based on income/wealth. The situation is moderated by social/public housing. North america is dominated by the private market. 69% of canadian households owned their homes in 2011. Private housing markets deliver best housing and locations to the wealthy. Vacant dwellings and new units = geographical disposition of housing opportunities.