Role of Neighborhood Socio-Cultural & Religious Homogeneity in Housing Choice at Dimapur Town, India

Background and statement of the problem: Apart from housing attributes like structural, locational and neighborhood attributes, choice for residential house is also influenced by socio-economic conditions such as income, education, employment as well as community or ethnicity of people and their neighbors. Choice for homogenous community or religion in the neighborhood would be due to convenience of cooperation, adjustment, verbal communication, family security and cultural affinity. Research methodology and data: This paper examines the impact of homogeneity of neighbors' religion and community on the residential housing choice in Dimapur town of Nagaland state, India. Chi-square test and independent sample T-test have been computed to check whether homogeneity of culture and religion significantly affect the demand for housing and its price or not. Cohen's d value has also been estimated to measure their effects. Truncated Regression Techniques have been used to examine the overall impact of religion or community of neighbor on the choice and house price (rent) paid by the individuals. Research findings: Across religious groups on an average Muslims have the lowest average family income in the study area and they pay the lowest average monthly rent. On the other hand, community wise Naga's earn the maximum and also pay relatively higher rent than any other community. Family income, family size and duration of stay are found to have significantly positive impacts on rent. Results of Chi-square test and independent sample T-test reveal that homogeneity of neighbors' religion does not significantly affect choice of location and willingness to pay of the sample respondents but homogeneity of neighbors' community with that of respondent's own community significantly influence choice of location and they are willing to pay even higher price (rent) for living near the people of same community. Policy implications: Despite cosmopolitan character of the town, the strong preference of residents to reside among the people belonging to their own community and higher willingness to pay would be due to security, convenience and psychological attachment. Differences in capability and willingness to pay have important policy implications for the construction of house and resource allocation. Thus, government may ensure security and take steps to remove cultural affinity in order to address this differential rent.