The article is devoted to the study of the role of social networks in development of a territory through the inclusion of individuals in social communities that influence the socio-economic, socio-cultural development of cities and regions. A social network in the present article refers to the structure of social relations and relationships between people, based on respect, common interests and mutual assistance. The study reveals some interconnections between indicators of a given social network (as structures of interaction between people) and living conditions (as characteristics of the level of territory development), and also shows through which social connections a person is most often included in social participation practices that contribute to development of a territory. In the study authors used the method of correlation analysis of the open database of the “Legatum Institute” analytical center. Another method consists of analysis of social graphs based on data from the social networking service “Vkontakte”. Weak-moderate but statistically significant associations are found between indicators of territorial development and indicators that determine quality of a social network (level of respect, harmony of interests and assistance to others). The study revealed a mechanism of multidirectional relationships between social networks and living conditions. Through this mechanism, territorial development can be ensured even in situations of crisis and economic instability. Analysis of social graphs showed that social networks differ while being linked to people who are socially active and socially passive in the number of social connections, in the number of social communities in which they are included, in the type of these communities. An important conclusion was made that university more often promotes inclusion in social participation practices precisely through development of new connections in a social network. While school systems contribute little to this. There is also a relatively low level of inclusion of youth in activities of territorial communities (POA, courtyard, housing, city communities, etc.), which requires a further detailed study.