Neighborhood Trust, Cohesion, and Diversity: How Demographic Patterns and Processes Shape Their Relationships

Abstract Compelling evidence from around the world suggests that ethnic diversity is detrimental to neighborhood trust and cohesion. Much of this evidence derives from empirical associations found with static indicators of diversity, measuring the mix of ethnic groups at a single point in time, and controlling for a varied mix of individual and community‐level covariates. Less attention though has sought to understand how dynamic processes of migration and residential settlement both create diversity and influence trust and cohesion. In this study, census and survey data are used to analyze the demographic and economic characteristics and dynamics coinciding with diversity in local communities in Australia, and the implications for neighborhood trust and cohesion. Diverse communities are heavily concentrated in moderately and highly disadvantaged communities in large immigrant gateway cities. Highly diverse communities experience continual high levels of immigration and population turnover and contain young age structures and more diverse and transient housing and household structures. Survey analyses reveal that these characteristics substantially explain observed negative associations between diversity and neighborhood trust and cohesion. The results point to the near‐intractable difficulties in isolating the effects of diversity and the importance of understanding the dynamic demographic processes in the construction of neighborhood diversity, trust, and cohesion.