Long-Term Effects of Homeownership on the Self-Perceptions and Social Interaction of Low-Income Persons

A variety of public, private and non-profit organizations have developed programs to assist low-income families purchase homes. These programs are often justified on the grounds that homeownership has a number of social and-psychological benefits. On the individual level, homeowners are said to enjoy higher social status and self-esteem, increased sense of control, and higher levels of life satisfaction. On the societal level, homeowners are said to have higher rates of participation in voluntary organizations and local social interaction. The longitudinal research described in this article assesses the validity of these claims by comparing changes in self esteem, perceived control, life satisfaction and social interaction between a group of low-income home buyers and a demographically similar group of continuing renters. The results show that home ownership has a positive and significant impact on both the life satisfaction and participation in neighborhood and block association meetings. Home ownership, however, was not found to significantly affect self-esteem, perceived control or informal social interaction in the local area.

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