For generations, owning a home has been viewed as the cornerstone of the American Dream, the foundation for a happy family life and long-term financial security. Now, a new research paper challenges that conventional wisdom. Wharton's Grace Wong Bucchianeri, a professor of real estate, says her research shows that while homeowners do experience significant joy, they also face more aggravation, spend less time with friends and are even heavier than renters living in comparable homes.

Past research into the mood of homeowners showed that people felt a sense of pride and comfort in having their name on a deed. Bucchianeri argues that her research shows, however, that once the data are controlled for a range of variables, owning a home appears to deliver no more happiness than signing a monthly rent check.

In a working paper titled "The American Dream or The American Delusion? The Private and External Benefits of Homeownership," Bucchianeri examines survey data from some 600 women in Ohio and weighs it across tax records and census data to study how homeownership affects the moods and feelings of individuals as well as their social interactions. "Homeowners report more positive results, but if you control for basic characteristics such as income, how nice the home is and health status, those results go away," explains Bucchianeri. "This suggests that our perception that homeowners are better off than renters might be fueled only by casual observations. The conventional wisdom might not hold up so well when you look at the data carefully."