Home ownership and residential satisfaction: Evidence from Hangzhou, China

Abstract

This paper studies the relationship and mechanism between home ownership and residential satisfaction in urban China using a large-sample survey data from Hangzhou city. It is found that home ownership does impact residential satisfaction. The paper identifies important differences in residential satisfaction across gender, generation, and economic status. Females seem to value owning a house much more than males. The older generation and high-income people have a higher residential satisfaction of owning a home than their counterparts. The research also identifies and examines the specific channels linking home ownership and residential satisfaction. Homeowners have a higher sense of belonging, more participation in social affairs and more right to education at a nearby school for their children than renters, and thus increase the likelihood of residential satisfaction.