A Behavioural Investigation of the Easterlin Paradox in Housing Markets

Do Individuals Adapt to All Types of Housing Transitions?

“…These are of interest as housing is not only one of the most important decisions that individuals make in their life (along with partnership and occupation), but also probably their largest financial investment. In developed economies, homeownership is not only a way of accumulating wealth but also a sign of personal success (although negative externalities via status concerns may also be at play here: see Wei et al, 2012, Foye et al, 2018, Bellet, 2019, and Bao and Meng, 2021. There is in addition a general consensus that homeownership is beneficial for both individuals (Dietz and Haurin, 2003, Elsinga and Hoekstra, 2005, Diaz-Serrano, 2009, Diaz-Serrano and Stoyanova, 2010, and Hu, 2013 and society (Rohe and Stewart, 1996, Rosi and Weber, 1996, DiPasquale and Glaeser, 1999, Glaeser and Sacerdote, 2000, and Dietz and Haurin, 2003.…”