Do Homeowners Have More Social Capital? A Quantitative Approach

Abstract: Behind the support of homeownership in many countries, there is wide belief that homeownership creates better citizens. Recognizing that homeownership is a more time-intensive form of tenancy than renting, but also that the valuation of some forms of social capital is complementary to the residential property value, we hypothesize that ownership will reduce engagement in some forms of social interactions and increase it in others. We show that activities relating to local community tend to be encouraged by ownership, whereas others, like political involvement, are not. We conclude homeowners are selective in their investments in social capital and predominantly engage in social interactions where the investments can be capitalized through higher value of their homes.