Renting or owning
What is the impact of renting versus owning on residents?
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An early study on this topic was conducted by Richard Easterlin in the 1970s.
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Easterlin found that homeownership was positively associated with happiness while renting was negatively associated with happiness.
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He argued that homeownership provides individuals with a sense of control and stability.
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Furthermore, a study by Helliwell and Huang (2010) found that homeownership was positively related to subjective well-being and that the effect of homeownership on happiness was stronger for those with children.
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However, other studies have challenged these findings.
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For example, a study conducted by Grace Wong Bucchianeri and Edward Glaeser in 2008 found that homeownership had no significant effect on happiness.
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They argued that the relationship between housing and happiness is more complex than previously assumed and that other factors such as income, social relationships, and job satisfaction may also influence happiness.
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Similarly, a study by Kahneman and Deaton (2010) found that while homeownership did have a positive effect on life satisfaction, this effect was largely due to the financial benefits of homeownership rather than any intrinsic positive aspects of owning a home.