Abstract:

Interest in homeownership among Americans has been justified by claims that it confers benefits both to individuals and to the society as a whole, including good citizens, stable neighborhoods and strong communities. This paper examines evidence for these claims. Strong and consistent evidence indicates that homeowners are more likely to: a) be satisfied with their homes and neighborhoods; b) participate in voluntary and political activities; and c) stay in their homes longer, contributing to neighborhood stability. Evidence on several other purported positive impacts is sparse or inconclusive. Some of these positive impacts, however, may be limited to specific populations or housing conditions. Further, some evidence suggests that under certain condition, homeownership may have negative impacts, including damage to psychological or physical health and decreased ability to escape distressed neighborhoods. The possibility of negative impacts suggests caution be taken when promoting homeownership, particularly among those less likely to be successful.