This dissertation consists of two essays. The connecting theme for this body of work is social interaction. I define social interaction, for this dissertation, as non-market based face-to-face interaction between individuals where each is interested in a response. Non-market based means, for example, the individual is not trying to negotiate a price of a good or a labor contract, but is merely interested in the other's input, company, or friendship. Within the dissertation, I examine the relationship between social interaction and local area population density and the effect of social interaction on the urban consumer's location and housing consumption decision.