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Individual Payoffs and the Effect of Homeownership on Social Capital Investment

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  • Eric Fesselmeyer
  • Kiat Ying Seah

Abstract

We revisit the relation between homeownership and social capital investment with confidential individual-level panel data from Los Angeles County. Using anticipated real wage change as an instrument for ownership, we find strong evidence that homeownership increases participation in block meetings, and find no homeownership effect on three other activities: volunteerism, participation in a local political organization, and participation in a civic group. These results are confirmed in fixed effects models. Our results support a pecuniary motive: that homeownership increases social capital investment when such investments are perceived to generate gains solely for homeowners.

Suggested Citation

  • Eric Fesselmeyer & Kiat Ying Seah, 2018. "Individual Payoffs and the Effect of Homeownership on Social Capital Investment," Journal of Housing Research, Taylor & Francis Journals, vol. 27(1), pages 59-78, January.
    • Handle: RePEc:taf:rjrhxx:v:27:y:2018:i:1:p:59-78
    DOI: 10.1080/10835547.2018.12092141
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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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