It so does!
I'm originally from FL and then spent some time in TX. I know that I was raised to be tolerant and sensitive to race issues. (Not matter what race that may be.) I have never used the "N" word or anything like it. I don't make racial jokes or laugh when people do. It's a little shocking to me when I do hear it. Back home or in TX I'm looking around like "Oh jeez...What is going on???"
Here, in Schenectady, it is much more "relaxed". DH and his brothers grew up in a much more diverse area than I did. I had maybe twenty ethnic kids(any ethnicity other than white) in my schools growing up. Here, depending on the neighborhood, the white kids are the minority. I have been around a group of diverse people and heard a racial joke thrown out there. I freeze and wait for a fight and they just laugh!
What I am trying to say I guess, is that it really does matter where you live. Things are tolerated better in certain places, or maybe just not as stigmatized.
It really does.