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The Long-run Effects of Housingon Well-Being

Author

Listed:
  • Andrew E. Clark

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Luis Diaz-Serrano

    (Universitat Rovira i Virgili, Universidad Antonio de Nebrija)

Abstract
This paper provides one of the first testsof adaptation tothe complete set ofresidential transitions. We use long-run SOEP panel data and consider the impact of all housing transitions, whether or not they involvea change in housing tenureor geographical movement, on both life satisfaction and housing satisfaction. Controlling for individual characteristics and housing quality, some residential transitionsaffect life satisfactiononly little, while all transitions have a significant effect on housing satisfaction. This latter is particularly large for renters who become homeowners and move geographically,and for renters who move without changing tenure status. Regarding housing satisfaction, we find very little evidence of adaptation even after five years. Losing homeowner status is the only transition that produces lower housing satisfaction, and here the effect seems to become even more negative over time.

Suggested Citation

  • Andrew E. Clark & Luis Diaz-Serrano, 2021. "The Long-run Effects of Housingon Well-Being," PSE Working Papers halshs-03230851, HAL.
    • Handle: RePEc:hal:psewpa:halshs-03230851
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03230851
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    References listed on IDEAS

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    1. repec:hal:pseose:halshs-00846456 is not listed on IDEAS
    2. Qari, Salmai, 2014. "Marriage, adaptation and happiness: Are there long-lasting gains to marriage?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 29-39.
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    5. Andrew E. Clark, 2019. "Born to Be Mild? Cohort Effects Don’t (Fully) Explain Why Well-Being Is U-Shaped in Age," Springer Books, in: Mariano Rojas (ed.), The Economics of Happiness, chapter 0, pages 387-408, Springer.
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    9. Reto Odermatt & Alois Stutzer, 2019. "(Mis-)Predicted Subjective Well-Being Following Life Events," Journal of the European Economic Association, European Economic Association, vol. 17(1), pages 245-283.
    10. Andrew E. Clark & Yannis Georgellis, 2013. "Back to Baseline in Britain: Adaptation in the British Household Panel Survey," Economica, London School of Economics and Political Science, vol. 80(319), pages 496-512, July.
    11. Shang-Jin Wei & Xiaobo Zhang & Yin Liu, 2012. "Status Competition and Housing Prices," NBER Working Papers 18000, National Bureau of Economic Research, Inc.
    12. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    13. Stotz, Olaf, 2019. "The perception of homeownership utility: Short-term and long-term effects," Journal of Housing Economics, Elsevier, vol. 44(C), pages 99-111.
    14. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    15. Clark, Andrew E., 2001. "What really matters in a job? Hedonic measurement using quit data," Labour Economics, Elsevier, vol. 8(2), pages 223-242, May.
    16. Beata Nowok & Maarten van Ham & Allan M Findlay & Vernon Gayle, 2013. "Does Migration Make You Happy? A Longitudinal Study of Internal Migration and Subjective Well-Being," Environment and Planning A, , vol. 45(4), pages 986-1002, April.
    17. Feng Hu, 2013. "Homeownership and Subjective Wellbeing in Urban China: Does Owning a House Make You Happier?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(3), pages 951-971, February.
    18. Chris Foye & David Clapham & Tommaso Gabrieli, 2018. "Home-ownership as a social norm and positional good: Subjective wellbeing evidence from panel data," Urban Studies, Urban Studies Journal Limited, vol. 55(6), pages 1290-1312, May.
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    Cited by:

    1. Richard H. Rijnks & Stephen Sheppard, 2018. "Occupant Well-Being and House Values," Department of Economics Working Papers 2018-05, Department of Economics, Williams College.
    2. 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.

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    More about this item

    Keywords

    Housing; Adaptation; Well-being; SOEP;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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