The Psychology of Home Ownership

Most of the rationale assigned to buying a home has usually been based on money, specifically the financial benefits to be had through the deduction of property taxes and mortgage interest and the building of wealth through equity.

As I show in my book Home Ownership in America, however, the psychological or emotional benefits to be had from home ownership have accounted for a significant share of the buying (and selling) of property over the years. Whatever dwelling one happens to choose, owning a home has historically represented a powerful symbol of independence and security (even if one is still paying off the mortgage to the bank). Owning a piece of land, no matter how tiny, appears to satisfy a primal need rooted in the search for permanent shelter from the elements.

Given such strong emotions underlying home ownership, it’s not surprising that it has been a much sought-after goal among Americans. Perhaps the most remarkable thing about the desire to own a home has been how it has crossed the social divisions of age, gender, race, and class—quite a rare thing in our diverse society. Americans have gone to great lengths to own the place where they live, for reasons going well beyond the financials. We no longer live in caves, but a home is still perceived as a safe haven from the hazards found in the outside world, especially if one’s name is on the deed.

The Symbolic and Emotional Importance of Ownership

There are other factors involved in the pursuit of home ownership. Some buyers perceive a home as a symbol of success, while others as a means of expressing who they are to the rest of the world. Interestingly, the usually dreaded mortgage can also offer an emotional upside. For a married couple, a 30-year commitment to pay back a loan has functioned as a symbol of the spouses’ commitment to each other, as well as to the community where they have settled down.

Gender roles, while stereotypical, have historically played into the dynamics of home ownership. For men, owning a home has tended to be a sign of achievement, while for women it has often conveyed a sense of togetherness. Those who grew up in homes owned by their parents typically consider having one of their own as adults to be “normal.” This is yet another part of the deeply rooted psyche of home ownership.

A 1992 Fannie Mae survey revealed how deeply home ownership was ingrained in Americans’ consciousness at the time. Most Americans reported that owning a home was so important that they happily would work longer hours, travel farther to their workplace, give up career opportunities, or even take a second job to avoid being renters. There was financial, psychological, and familial security embedded in owning a home, the national poll suggested, with intangible benefits seemingly as important as the tangible ones.

The flipside to the psychological overtones associated with owning a home is that renting has long been considered somehow morally suspect, a temporary state of being from which one should escape as soon as financially feasible. Taking on debt via a mortgage suggests that one has a strong work ethic, the subtext being that by owning property, one is presumably less likely to engage in any activity that could be interpreted as subversive.

Ownership Deepens Community

As a socially sanctioned act, home ownership has been understandably equated with a deeper planting of roots in a community than that made possible by renting.Throughout American history, home ownership has been a symbol not only of personal achievement but also of community stability, which may account for why it is so much a part of our national identity. One can say that investing in a home has even been portrayed as a kind of patriotic act, and something that all Americans should thus strive for.

To that point, much of the American dream is steeped in home ownership. President Biden said as much in May 2023 when he issued a proclamation declaring June of that year National Homeownership Month. “I call upon the people of this Nation to safeguard the American Dream by ensuring that everyone has access to an affordable home in a community of their choice,” Proclamation 10592 read, with the declaration soon entered in the Federal Register.