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Occupant Well-Being and House Values

Richard Rijnks () and Stephen Sheppard ()

No 2020-09, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: Recent research indicates that the subjective evaluation of well-being increases when conditions of housing are improved. This suggests that subjective well-being might serve as a useful proxy for characteristics of a home or neighbourhood that are relevant to an occupant, but unobserved by the analyst. In this paper, we assess this idea through analysis of residential property valuation, using a sample of 95,413 respondents matched to house sales for 2000 to 2012 in the North of the Netherlands. Using a spatial econometric approach, we find a significant and positive association between individual and regional subjective well-being and house prices. This suggests that house buyers are willing to pay more for, or that house sellers require greater compensation to sell and move from, properties and areas in which the resident experiences greater happiness. Our study provides the first estimates of the importance of these effects.

Keywords: Subjective well-being; house price; hedonic model (search for similar items in EconPapers)
JEL-codes: D91 R2 R3 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2020-09-01
New Economics Papers: this item is included in nep-hap, nep-hea and nep-ure
Note: This is a revision of WP 2018-05 and WP 2019-23
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Related works:
Working Paper: Occupant Well-Being and House Values (2019) Downloads
Working Paper: Occupant Well-Being and House Values (2018) Downloads
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