IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2023_170.html

In Debt but Still Happy? Examining the Relationship Between Homeownership and Life Satisfaction

Author

Listed:
  • Sebastian Will
  • Timon Renz

Abstract

We investigate the relationship between homeownership and life as well as housing satisfaction. Using panel data from Germany, we find that compared to renting, owning a home positively affects housing satisfaction. Contrarily, we find no significant effects on life satisfaction in the long-term. Analyzing short-term effects in an event-study design, we show that both life and housing satisfaction anticipate the event and adapt shortly after. Debt-free buyers, however, do not experience anticipation or adaptation effects at all. Comparing outright homebuyers to debt-financing owners, we show that having a real estate loan affects homeowners’ life satisfaction negatively. Paying off a loan does not differently affect the housing satisfaction of both types of buyers. We conclude that the negative effect of the financial burden of a mortgage could offset the positive effect of homeownership.

Suggested Citation

  • Sebastian Will & Timon Renz, 2023. "In Debt but Still Happy? Examining the Relationship Between Homeownership and Life Satisfaction," ERES eres2023_170, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2023_170
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2023-170
    Download Restriction: no
    File URL: https://eres.architexturez.net/system/files/P_20230710132749_5884.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Oliveira, Alessandro V.M. & Oliveira, Bruno F. & Vassallo, Moisés D., 2023. "Airport service quality perception and flight delays: Examining the influence of psychosituational latent traits of respondents in passenger satisfaction surveys," Research in Transportation Economics, Elsevier, vol. 102(C).
    3. Gum-Ryeong Park & Jinho Kim, 2023. "Trajectories of Life Satisfaction Before and After Homeownership: The Role of Housing Affordability Stress," Journal of Happiness Studies, Springer, vol. 24(1), pages 397-408, January.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2023_170. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.