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The Emotional Economy of Housing

Author

Listed:
  • Hazel Christie

    (Institute of Geography, University of Edinburgh, Drummond Street, Edinburgh EH8 9XP, Scotland)

  • Susan J Smith

    (Department of Geography, University of Durham, Science Laboratories, South Road, Durham DH1 3LE, England)

  • Moira Munro

    (Department of Urban Studies, University of Glasgow, 25 Bute Gardens, Glasgow G12 8RS, Scotland)

Abstract

This paper offers an interpretation of the role of emotions in animating housing markets which complements more traditional economic and behavioural studies of locally based house-price inflation. Looking to debates within social psychology and cultural studies we suggest that emotions permeate the materiality and meaning of housing markets as well as the experience of individuals acting within them. Drawing on qualitative interviews conducted in Edinburgh, with households who bought in a rising market, we argue that housing transactions are emotional as well as economic affairs. We reconsider the fears that underpin what might appear to be ‘irrational exuberance’ and we argue that housing markets are propelled by a search for returns on emotional as well as financial investments.

Suggested Citation

  • Hazel Christie & Susan J Smith & Moira Munro, 2008. "The Emotional Economy of Housing," Environment and Planning A, , vol. 40(10), pages 2296-2312, October.
    • Handle: RePEc:sae:envira:v:40:y:2008:i:10:p:2296-2312
    DOI: 10.1068/a39358
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    References listed on IDEAS

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    1. Shiller, Robert J, 1990. "Market Volatility and Investor Behavior," American Economic Review, American Economic Association, vol. 80(2), pages 58-62, May.
    2. Jesse M. Abraham & Patric H. Hendershott, 1994. "Bubbles in Metropolitan Housing Markets," NBER Working Papers 4774, National Bureau of Economic Research, Inc.
    3. Karl E. Case & Robert J. Shiller, 1988. "The behavior of home buyers in boom and post-boom markets," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 29-46.
    4. François Ortalo-Magné & Sven Rady, 2006. "Housing Market Dynamics: On the Contribution of Income Shocks and Credit Constraints ," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 73(2), pages 459-485.
    5. Susan J Smith & Donna Easterlow & Moira Munro, 2004. "Housing for Health: Does the Market Work?," Environment and Planning A, , vol. 36(4), pages 579-600, April.
    6. Diaz-Serrano, Luis, 2005. "On the negative relationship between labor income uncertainty and homeownership: Risk-aversion vs. credit constraints," Journal of Housing Economics, Elsevier, vol. 14(2), pages 109-126, June.
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    Cited by:

    1. Sutti Ortiz, 2012. "Decisions and Choices: The Rationality of Economic Actors," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 4, Edward Elgar Publishing.
    2. Liis Ojamäe, 2009. "Making Choices in the Housing Market: A Social Construction of Housing Values," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 1(2).

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