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Financial Satisfaction and Homeownership

Author

Listed:
  • Derek T. Tharp

    (University of Southern Maine)

  • Martin Seay

    (Kansas State University)

  • Cherie Stueve

    (Kansas State University)

  • Somer Anderson

    (Maryville University)

Abstract

This study investigates the relationship between homeownership and financial satisfaction. Using samples of non-retired individuals ages 25–64, this study examines three questions. First, what is the relationship between homeownership and financial satisfaction? Second, among homeowners, what is the relationship between holding a mortgage and financial satisfaction? Third, among mortgage holders, what is the relationship between having missed mortgage payments and financial satisfaction? Through the use of ordinary least squares regressions on non-pooled, cross-sectional data from the 2009, 2012, and 2015 waves of the U.S. State-by-State National Financial Capability Study, this study finds that homeownership is positively associated with financial satisfaction; among homeowners, having a mortgage is negatively associated with financial satisfaction; and among mortgage holders, having missed a mortgage payment is positively associated with financial satisfaction. The positive association between having missed a mortgage payment and financial satisfaction is counterintuitive and warrants further investigation. Potential factors contributing to this unexpected relationship between having missed a mortgage payment and financial satisfaction—including measurement issues and endogeneity—are discussed. Policy makers may wish to consider the nuanced ways in which homeownership (positive) and having a mortgage (negative) are associated with financial satisfaction when developing policies which promote homeownership.

Suggested Citation

  • Derek T. Tharp & Martin Seay & Cherie Stueve & Somer Anderson, 2020. "Financial Satisfaction and Homeownership," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 255-280, June.
    • Handle: RePEc:kap:jfamec:v:41:y:2020:i:2:d:10.1007_s10834-019-09652-0
    DOI: 10.1007/s10834-019-09652-0
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    References listed on IDEAS

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    Cited by:

    1. Sebastian Will & Timon Renz, 2021. "In Debt but Still Happy? Examining the Relationship between Homeownership and Life Satisfaction," ERES eres2021_89, European Real Estate Society (ERES).
    2. Tomáš Želinský & Martina Mysíková & Thesia I. Garner, 2022. "Trends in Subjective Income Poverty Rates in the European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2493-2516, October.
    3. Rachel Ong ViforJ & Hiroaki Suenaga & Ryan Brierty, 2024. "Homeownership and subjective well-being: Are the links heterogeneous across location, age and income?," Urban Studies, Urban Studies Journal Limited, vol. 61(5), pages 859-877, April.
    4. Tharp, Derek & Parks-Stamm, Elizabeth, 2020. "Examining Gender Differences in Predictors of Financial Satisfaction: Evidence from Taiwan," SocArXiv 2yvjs, Center for Open Science.
    5. Derek T. Tharp & Elizabeth J. Parks‐Stamm, 2021. "Examining gender differences in predictors of financial satisfaction: Evidence from Taiwan," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(4), pages 1505-1539, December.

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