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Health Preferences and Sorting in the City
1Max Planck Institute for Behavioral Economics, Bonn, Germany.
Health Economics
|March 20, 2026
Summary
Individuals with a strong preference for health choose neighborhoods with amenities like parks. This sorting, however, can increase housing costs, potentially worsening health inequality.
Area of Science:
- Urban Economics
- Health Geography
- Public Health Policy
Background:
- Significant health disparities exist across urban neighborhoods globally.
- Neighborhood characteristics and access to health amenities are linked to health outcomes.
- Understanding individual choices in residential location is crucial for addressing health inequalities.
Purpose of the Study:
- To investigate the relationship between individual health preferences and neighborhood choice.
- To quantify the impact of health-seeking behavior on residential sorting and health amenities.
- To analyze the influence of health amenity demand on housing prices and spatial health inequality.
Main Methods:
- Estimation of a neighborhood choice model using geolocated health survey data from New York City.
- Integration of neighborhood characteristics data from diverse sources.
- Analysis of the link between health preferences, amenity proximity, and housing market dynamics.
Main Results:
- Individuals prioritizing health are more likely to reside near health amenities like parks.
- This health-driven residential sorting significantly contributes to observed geographical health inequalities.
- Increased demand for health amenities is predicted to inflate house prices, displacing lower-income individuals.
Conclusions:
- Individual health preferences drive residential sorting, impacting neighborhood composition and health amenity access.
- The capitalization of health amenity demand into housing prices can exacerbate spatial health inequalities.
- Public health initiatives promoting amenity use may inadvertently worsen access disparities for vulnerable populations.
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