posted on 2023-01-25, 10:00authored byHelen X. H. Bao, Charlotte Chunming Meng
This research investigates the relationship between housing wealth and residential satisfaction. Using household panel survey data from the UK, we find that individuals’ asymmetric responses to changes in housing wealth distribution, that is, loss aversion experienced by the worse-off group, could offset the gain from an increase in housing wealth at the aggregate level. Consequently, housing wealth growth does not necessarily improve residential satisfaction for society as a whole if it leads to housing wealth inequality. Given the significant impact of housing wealth distribution on residential satisfaction, it is important to consider housing wealth inequality in making public policy decisions.
Funding
This work was supported by the Economic and Social Research Council [grant number ES/P004296/1]; the National Natural Science Foundation of China [grant number 71661137009]; the Department of Land Economy Research Development Fund; and the Senior Members’ Research Grant from Newnham College, University of Cambridge.