Misery and Subprime Mortgages

Bucchianeri's research seems particularly relevant today because the bursting of the housing bubble has led to a good deal of stress -- both financial and psychological. As a result of the subprime mortgage crisis, she says her findings may help potential homebuyers take a deeper look at their motives for owning a home. They should not pursue homeownership because it is perceived to be a key ingredient in a meaningful and successful life. Renters may lack some freedom and flexibility in their lives and there are some financial risks to long-term renting. "Still, there are financial risks we are now seeing connected with homeownership," she adds.

Interestingly, Bucchianeri's research is based on 2005 data collected before the housing crash. Even in a period of optimism about housing as a financial investment, she found that homeownership does not necessarily represent the fulfillment of a dream. "Overall, I found little evidence that homeowners are happier by any of the following definitions: life satisfaction, overall mood, overall feeling, general moment-to-moment emotions and affect at home," Bucchianeri writes. "The average homeowner, however, consistently derives more pain (but no more joy) from a house and home."

A homeowner herself since 2005, Bucchianeri says, "I know there are aspects of homeownership that are not so enjoyable. My thought is homeownership might not be financially -- or emotionally -- for everyone."

Bucchianeri says her research may be helpful in counteracting the widely accepted belief that homeownership carries with it many personal and social benefits. She notes that in a 2003 survey conducted by Fannie Mae, 74% of the respondents said they believe "owning something of your very own" is a reason to buy a home. Bucchianeri notes that without more careful analysis, important public policy matters, such as preserving the mortgage interest tax deduction or other support for housing programs, may be impacted by incomplete, or misleading, information. "This romantic view of homeownership alludes to important private and external benefits of homeownership, separate from the benefits of housing consumption on its own," the paper states.

Bucchianeri explored both subjective and objective measures to determine the private benefits of homeownership and civic engagement. The basis of much of her research is a survey of well-being, demographics and time use reported by women in Franklin County, Ohio, which includes Columbus, the state's largest city. The survey respondents logged their activities in various time periods, or episodes, each day. They then reported the intensity of 10 feelings during each time segment: Impatient, Competent/Confident, Tense/Stressed, Happy, Depressed/Blue, Interested/Focused, Affectionate/Friendly, Calm/Relaxed, Irritated/Angry. Bucchianeri ran that data against other survey data and objective measures such as property tax records to gauge the quality of the home to control for differences in the quality of the housing.

Bucchianeri also examined the intensity of the emotions for each episode to create a net measure of mood for each respondent in the Ohio survey for the entire day. In addition to the episode data, survey respondents were asked broader questions about the level of general satisfaction in their lives. They were also asked about the amount of joy or pain they derive from various aspects of their lives including their neighborhood, house and home, children, family and community activities.