This paper reviews methods for analyzing both individual preferences and choices about where to live, and the implications of these choices for residential patterns. Although these methods are discussed in the context of residential choice, they can be applied more broadly to individual choices in a range of social contexts where behavior is interdependent.We also discuss specific problems with residential mobility data, including the treatment of one’s current location as a potential choice, the aggregation of units and the need to take into account variations in neighborhood size, the problem of very large choice sets; and the link between residential mobility and patterns of neighborhood change.