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Is owning your home good for your health? Evidence from exogenous variations in subsidies in England

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  • Munford, Luke A.
  • Fichera, Eleonora
  • Sutton, Matt

Abstract

Home ownership is an important component of wealth and may affect health through a range of mechanisms. Using macro- and micro-level data from 2000 to 2008, we seek to estimate the causal effect of home ownership on health by exploiting the Right to Buy policy, which encouraged long-term tenants of publicly rented housing to buy their home at a large discount. At the macro-level we find that a 10 percentage-point increase in home ownership rates is associated with a 2 percentage-point reduction in the number of people reporting having a longstanding health condition. At the individual level we find that home ownership increases the General Health Questionnaire score by 1.46 points on a 37-point scale and self-assessed health by 0.19 points on a 5-point scale and reduces the number of health conditions reported by 0.65. Further analyses show that home ownership affects health via labour markets, with new job opportunities, extra time saved travelling and resources available for healthy leisure activities. These results suggest that housing policies, such as affordable housing, can be an example of non-health policies that improve health.

Suggested Citation

  • Munford, Luke A. & Fichera, Eleonora & Sutton, Matt, 2020. "Is owning your home good for your health? Evidence from exogenous variations in subsidies in England," Economics & Human Biology, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:ehbiol:v:39:y:2020:i:c:s1570677x20301738
    DOI: 10.1016/j.ehb.2020.100903
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    2. Phuong Thu Nguyen & Preety Srivastava & Longfeng Ye & Jonathan Boymal, 2022. "Housing and occupant health: Findings from Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1297-1321, December.
    3. Breen, Casey, 2023. "The Longevity Benefits of Homeownership," SocArXiv 7ya3f, Center for Open Science.

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    More about this item

    Keywords

    Home ownership; Health and well-being; Right to Buy; Housing policies;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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