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This version was published on November 1, 2007
Environment and Behavior, Vol. 39, No. 6, 841-858 (2007)
DOI: 10.1177/0013916506297829

Tenure Choice in the Housing Market

Psychological Versus Economic Factors

Danny Ben-Shahar

Technion-Israel Institute of Technology

The author conducted a survey to examine psychological and economic factors affecting the homeownership–tenancy choice. Among the many results, the author found disturbing evidence according to which there exists a fundamental flawed reasoning in the common judgment of the financial superiority of ownership over tenancy. Most important, however, the author finds that although psychological and economic factors involved in the tenure decision are highly correlated, the psychological factors are found to be more statistically significant in explaining the realized tenure mode. This, in turn, may suggest that psychological effects might act as the underlying forces for determining the apparent economic tenure decision.

Key Words: correlation • homeownership • psychological • rational • survey • tenancy • tenure choice


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