September 2006

IZA DP No. 2318: Housing Satisfaction, Homeownership and Housing Mobility: A Panel Data Analysis for Twelve EU Countries

published as 'Mobility and housing satisfaction: an empirical analysis for 12 EU countries ' : Journal of Economic Geography, 2010, 10 (5), 661-683

We investigate the determinants of housing satisfaction in twelve EU countries. To do so, we use panel data covering the period 1994-2001, which allows us to control for individual heterogeneity. We carry out separate estimates on the determinants of housing satisfaction for homeowners and for renters and observe that: i) the tenure status is critical in determining the level of housing satisfaction; ii) housing satisfaction acts as trigger event of housing mobility, and; iii) dissatisfied renters are more likely to move than their homeowners counterparts. Our results also allow us to conclude that self-reported housing satisfaction is a meaningful variable able to explain individual’s objective economic behavior, since it is able to anticipate movements in the households’ demand for housing.