In the context of the rapid development of the city of Calcutta, a lot of spontaneous clusters of housing (high-rise, single room) have been constructed. Along with such development a considerable portion have been slums. Calcutta being one of the most populated cities in the world, is experiencing an acute shortage of living space - housing. About 300 adult subjects and as many children were chosen from the study area to see how the subjects perceived the environment they presently live in, their emotional reaction with reference to the high density and their level of intellectual functioning. Results show that high density living has a marked influence on psychological and social characteristics of the individual, considering their felt need for a particular environment and the quality of the environment they currently live in.