Homeownership makes you happy

Owners are happier than renters.

This is shown in a recent study by the University of Hohenheim, commissioned by the LBS Baden-Württemberg Foundation for Building and Housing. According to the study, 80 percent of owners would choose to buy a house or apartment again, and 65 percent would even choose the same property.

“Home sweet home” – sayings, however banal they may seem, usually contain a kernel of truth. As part of their study “Does homeownership make you happy?”: On real estate and happiness, happiness researchers at the University of Hohenheim surveyed 2,788 people in Baden-Württemberg and 1,442 in other German states, across all income, education, and age groups.

The result: Nearly two-thirds of the surveyed homeowners stated that owning property makes them happier. "They are also significantly more satisfied with their living environment than renters," explains the study's director, Professor Dr. Frank Brettschneider.
While retirement planning, and thus the desire for security, remains the leading reason for homeownership at 73 percent, aspects of self-realization such as individual freedom of design (72 percent) and independence (68 percent) are almost equally important.
For example, 43 percent of renters also believe they would be happier if they owned their own home. More than half think that buying a property would have a positive impact on their quality of life. "People want to shape their surroundings according to their own preferences. They derive part of their satisfaction and happiness from this," comments Tilmann Hesselbarth, board member of the LBS Foundation for Construction and Housing, on the survey results.

Respondents cited health, self-determination, financial security, and a stable partnership as crucial for a positive outlook on life. Housing is also among the seven dimensions of happiness identified by researchers. "Homeownership has a significant, independent effect on one's sense of happiness," says Bretschneider. For most people, owning their own home means far more than just a secure investment.

“The experience of our real estate experts confirms the study's findings,” says Kurt Friedl, Managing Director of RE/MAX Germany Southwest, “including the decisive criteria for choosing a place to live.” According to the study, a central yet quiet location, as well as good infrastructure and transport links, are in demand. The researchers even identified the most significant moments of happiness associated with homeownership: in addition to the actual purchase and moving into the home, paying the final mortgage installment is a major milestone. The biggest disappointment, according to those surveyed, was when their children moved out.

Source: Study: Does homeownership make you happy?
LBS Baden-Württemberg Foundation for Building and Housing, University of Hohenheim