Homeowner-renter dwelling, neighbourhood and life satisfaction gaps

On average, individuals who own their dwelling report higher satisfaction with their dwelling, neighbourhood and life than renters. These differences may reflect a positive causal impact of ownership on satisfaction. However, these differences could also reflect compositional effects, such as differences in household, dwelling and neighbourhood characteristics. Using the 2021 Canadian Housing Survey, this study shows that these differences in satisfaction narrow substantially, or disappear entirely, upon controlling for compositional effects. For instance, the majority of the dwelling satisfaction gap between renters and owners could be attributed to owners being more likely to reside in single-detached dwellings, with more bedrooms, and fewer dwelling issues such as mould or pests. Similarly, the life satisfaction gap was largely tied to household composition differences such as owners being less likely to experience financial difficulties and other differences related to their health status, marital status and age. In other words, comparable individuals living in comparable dwellings and neighbourhoods report similar satisfaction levels. This finding suggests that the impact of ownership on satisfaction, if any, is relatively small. This finding does not rule out the possibility that ownership can provide other social or economic benefits.