Residential Mobility and Neighbourhood Outcomes

Abstract When households move they obviously weigh both the quality of the house and the quality of the neighbourhood in their decision process. But, to the extent that housing quality and neighbourhood quality are inter-twined it is difficult to disentangle the extent to which households are more focused on one or another of these two components of the choice process. This paper uses both cross-tabulations of the neighbourhood choices, and logit models of the actual choices, to examine the relative roles of neighbourhoods and houses in the choice process. The research is focused on the question of the extent to which households trade up in house quality, or neighbourhood quality or both, as outcomes of residential mobility. The research measures neighbourhood quality in both socio-economic and environmental dimensions. The study shows that many households not only move up in housing quality, but quite consistently also make gains in neighbourhood quality, often independently of gains in housing quality. Not surprisingly, the largest gains in neighbourhood quality are related to households who make the city/suburban transition in their housing moves. The research adds another dimension to the growing and extensive literature on neighbourhoods and their role in residential choice. Keywords: Residential choiceneighbourhoodsphysical environment