Calling from the outside: The role of networks in residential mobility

Abstract

Using anonymised cellphone data, we study how social networks shape residential mobility decisions. Individuals with few local contacts are more likely to change residence. Movers strongly prefer neighbourhoods where they already know more people nearby. Contacts matter because proximity to them is valuable and makes attractive locations more enjoyable. They also provide hard-to-find local information and reduce frictions, especially in home-search. Effects are not driven by similar people being more likely to be friends and move between certain locations. Recently-moved and more central contacts are particularly influential. With age, proximity to family gains importance over friends.