Homeownership and Subjective Wellbeing in Urban China: Does Owning a House Make You Happier?

This paper examines the effect of homeownership status on individual subjective wellbeing indicators in urban China using
a large nationally representative dataset. It is the first to gauge the relationship between homeownership and individual
subjective wellbeing in the setting of China and is also among the few empirical studies concerning developing countries.
The results show that the homeownership status does have a strong positive effect on both one’s housing satisfaction and overall
happiness in urban China. Even after controlling for housing satisfaction in the equation, the homeownership status still
positively affects one’s overall happiness, suggesting that the homeownership status might also contribute to other possible
aspects of life satisfaction except for housing satisfaction. In addition, in terms of housing satisfaction, females seem
to value much more on owning a house than males, while the subjective benefits of owing a house in large cities seem to be
much smaller than in small cities.