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Renters Just As Happy As Homeowners

Is happiness included in the price of a picket fence? Despite the current housing crisis, defenders of home ownership continue to argue that there are plenty of non-monetary benefits to owning property, including increased well-being, civic participation and social ties. This idea -- that home-owning creates not only better lives, but better communities -- has long fueled home purchases as well as tax breaks and programs designed to encourage buyers.

During the boom market of 2005, Wharton School of Business researcher Grace Wong Bucchianeri set out to explore this assumption. Examing data on 600 women who lived in single-family homes in Columbus, Ohio, she compared renters and owners of similar socio-economic status on the basis of "well-being, time use, family life, social connectedness and civic participation."

Her recently released findings drew little connection between civic participation and social connectedness, with renters and homeowners showing similar levels of involvement in volunteer work, community activities and local politics. Moreover after controlling for factors such as income and health, Bucchianeri found "little evidence that homeowners are happier by any of the following definitions: life satisfaction, overall mood, overall feeling, general moment-to-moment emotions (i.e., affect) and affect at home." In fact, homeowners in the study spent less time with friends and on leisure activities. They also reported higher levels of "pain" derived from their house, unrelated to financial stress.

Nonetheless, 81 percent of homeowners call home ownership a very positive experience, while only 31 percent of renters say the same about renting. While the data may not correlate, it seems we continue to perceive owning a home as a positive experience.

FULL TEXT: The American Dream? The Private and External Benefits of Homeownership