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Local house prices and mental health

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  • Nayan Krishna Joshi

    (Wayne State University)

Abstract

This paper examines the impact of local (county-level) house prices on individual self-reported mental health using individual level data from the United States Behavioral Risk Factor Surveillance System between 2005 and 2011. Exploiting a fixed-effects model that relies on within-county variations, relative to the corresponding changes in other counties, I find that while individuals are likely to experience worse self-reported mental health when local house prices decline, this association is most pronounced for individuals who are least likely to be homeowners. This finding is not consistent with a prediction from a pure wealth mechanism but rather with the hypothesis that house prices act as an economic barometer. I also demonstrate that the association between self-reported mental health and local house prices is not driven by unemployment or foreclosure. The primary result—that lower local house prices have adverse impact on self-reported mental health of homeowners and renters—is consistent with studies using data from the United Kingdom.

Suggested Citation

  • Nayan Krishna Joshi, 2016. "Local house prices and mental health," International Journal of Health Economics and Management, Springer, vol. 16(1), pages 89-102, March.
    • Handle: RePEc:kap:ijhcfe:v:16:y:2016:i:1:d:10.1007_s10754-015-9177-x
    DOI: 10.1007/s10754-015-9177-x
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