Habitat degradation is a principal driver of global biodiversity loss, yet the factors influencing habitat integrity across countries remain insufficiently understood. This study investigates the socioeconomic, institutional, demographic, trade, and land-use determinants of the Biodiversity Habitat Index (BHI), a comprehensive measure of ecosystem integrity and habitat quality. Using internationally harmonized datasets covering around 216 countries and territories, the analysis compares two benchmark periods represented by three-year averages (2000–2002 and 2020–2022) to assess long-term patterns while minimizing short-term variability. A pooled Ordinary Least Squares regression model within an Environmental Kuznets Curve (EKC) framework was employed to evaluate the influence of economic development, governance quality, Convention on Biological Diversity (CBD) participation, trade openness, population characteristics, and land-use variables on habitat integrity. The results demonstrate that land-use change is the dominant driver of habitat degradation, with agricultural land, arable land, and permanent cropland exerting significant negative effects on BHI. In contrast, economic growth, governance quality, CBD participation, urbanization, and trade openness showed weak or statistically insignificant relationships, indicating that improvements in income or institutional commitment alone are insufficient to maintain ecosystem integrity. The regression model explained approximately 56% of the variation in BHI, highlighting the strong contribution of land-use factors in shaping global habitat conditions. Furthermore, the findings provide little support for the Environmental Kuznets Curve hypothesis, suggesting that habitat quality does not improve automatically with increasing levels of economic development. Instead, biodiversity outcomes depend largely on the manner in which land resources are managed. These findings underscore the need to integrate biodiversity conservation into agricultural and land-use planning through sustainable production systems, habitat restoration, and landscape-level conservation strategies. By identifying the principal drivers of habitat integrity across countries, this study provides policy-relevant evidence to support implementation of the Kunming–Montreal Global Biodiversity Framework and offers insights for strengthening international efforts to conserve biodiversity and promote resilient ecosystems.