Stated neighbourhood preferences: Examining the impact of individual background and neighbourhood characteristics

Neighbourhood preferences play a central role in the dynamics of spatial segregation. This paper investigates how stated neighbourhood preferences relate to individual background and the characteristics of current neighbourhoods. We use the Swedish Neighbourhood Survey 2020 that includes preferences and attitudes, linked to individual‐level register data and a multi‐dimensional, multi‐scale typology of neighbourhoods. Respondents indicated their preferred neighbourhood in terms of ethnic diversity and income mix. Our findings show that first, if free to choose, the majority prefer a mixed neighbourhood. Second, neighbourhood preferences reflect preferences for homophily and mirror individual background. Third, current neighbourhood characteristics significantly shape residential preferences, with those in the most diverse and urban academic areas exhibiting stronger preferences for ethnic diversity. Residents of less affluent areas tend to favour neighbours with lower incomes. Our findings suggest an amplification of latent segregation tendencies, given respondents' current neighbourhood ethnic diversity and income mix.