A recent study released by Ohio State University and the Center for Urban and Regional Analysis, states that owning your own home has significant health and well-being benefits, especially for children. The Social Consequences of Homeownership, commissioned by the Homeownership Alliance, found four major areas of social benefits to homeowners—more stable children, more satisfied adults, increased political activity and enhanced property values.

The study used the social sciences, medicine, psychology and sociology to conduct several controlled studies to determine if homeownership really has a noteworthy affect on social outcomes.

Family Benefits
Children who grow up with home-owning parents are more likely than their non-home-owning counterparts to turn into more well rounded adults. According to study, “homeownership requires parents to possess or obtain managerial and financial skills that are then transferred to their children.” The study also found that financial know-how is an increasingly important life skill, and that exposing children at a young age may greatly increase their chances of becoming financially sound adults.

Further research revealed that the increased stability among children of homeowners leads to improved educational outcomes, such as higher test scores and graduation rates.

While children enjoy many benefits resulting from homeownership, their parents also gain health and relationship benefits. While the nation’s divorce rate is steadily increasing, the divorce rate among married homeowners is falling.The study explains this by referring to the stability increase apparent in homeowners reporting that, “homeownership is positively associated with physical, mental and emotional health.”

Homeowners have a greater attachment to their community and usually have more social contacts than their renting equals, contributing to positive emotional health. While emotional benefits are numerous, the study noted one exception to homeowner’s positive health benefits—a greater tendency for anxiety due to increased obligations.

The study also found that homeowners are more contented with their lives, owing to the spillover benefits from an increased social circle, a stronger sense of belonging and increased activity in community groups.

Homeownership Leads to Greater Political and Social Involvement
The study revealed that homeowners tend to be more stable and have a stronger attachment to their community, making them more likely to recycle or vote. The most consistent finding is the homeowner-voting rate of 69 percent, compared to that of renters at only 44 percent. Homeowners are naturally more concerned about local affairs and are involved in community problems to reduce the risk of decreased property values.

Not only are homeowners generally more knowledgeable about environmental issues and are more likely to recycle than renters, but also they gain socially from the activity. While homeowners take their recyclables to the curb, they are more likely to chat with neighbors. This communication makes homeowners better able to participate in community organizations. And, the study notes the increased activity in civic associations seems to be driven by homeowners’ sense of financial responsibility.

Homeownership Enhances Property Values
The desirability of a community is a strong factor in a home’s value and a high occurrence of homeownership in one neighborhood increases property values. As property values soar in the neighborhood, homeowners have more incentive to maintain their own property, thereby increasing their net worth and prompting them to borrow against that equity to fund their children’s education, a small business, or a remodeling project. The positive benefits continue as remodeling increases property values, while sending children to college or starting a small business both continue the cycle of positive community effects.

The economic benefits that parallel social advantages also are strong factors in favor of homeownership. While slightly higher than recent historic lows, the average 30-year fixed mortgage rates continue to hover just under 6 percent. Additionally, the recent study, State of the Nations Housing, released in June by the Joint Center for Housing Studies at Harvard University states, “If interest rates remain low throughout 2003, home sales, prices and refinances could defy expectations again.” And, with the societal and economic benefits of homeownership clear, there’s never been a better time to achieve the American dream.

For more information about the Homeownership Alliance, visit www.homeownershipalliance.com. For more on the Joint Center for Housing Studies at Harvard University visit www.jchs.harvard.edu.

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