The Impact of Housing Prices on Health in U.S. Before, During and After the Great Recession

Abstract

I estimate the effects of U.S. Metropolitan Statistical Area (MSA) housing prices on a variety of health outcomes and risky health behaviors separately for homeowners and tenants. The constructed dataset consists of information on individuals from the 2002-2012 Behavioral Risk Factor Surveillance System (BRFSS) combined with homeownership data from the March Current Population Survey (CPS) and housing prices from Freddie Mac. I estimate positive results for homeowners in terms of their health and negative results for tenants. I also find increases in risky behaviors among tenants associated with increases in housing prices, which may be driving the reduction in their health status. Those estimated effects are concentrated on low income homeowners and tenants. The estimated contemporaneous effects do not persist in the long run while the effects of an increase in housing prices on being obese become more pronounced for homeowners, resulting in worse self-reported health.

Keywords: Housing prices, Wealth inequality, Health, Risky behaviors, Homeowners, Tenants

JEL Classification: I12, I14, I18