The intersection of homeownership, race and neighbourhood context: Implications for neighbourhood satisfaction

Abstract

This study contributes to the growing body of literature on the multifaceted consequences of homeownership for households and their communities, which has seldom focused on neighbourhood satisfaction, an important predictor of neighbourhood quality. Existing studies on the relationship between homeownership and neighbourhood satisfaction have not considered whether homeownership varies in its consequences depending on local context or racial background. Homeownership may render residents more responsive to neighbourhood conditions, to their benefit and to their detriment, depending on local context. Patterns may further vary across racial groups, given vast interracial inequalities in the attainment of desirable neighbourhood outcomes and homeownership. Employing a sample of 1897 respondents from the 2001 Los Angeles Family and Neighborhood Survey (LAFANS), as well as data from the 2000 Census, this study uncovers a complex set of interrelationships among homeownership, neighbourhood characteristics and race. Homeownership makes residents more sensitive to the desirability of local characteristics, proving beneficial in advantaged communities and disadvantageous in distressed communities. These conclusions are broadly applicable to blacks, Latinos and whites, though homeownership is more salient among blacks and Latinos in determining their response to neighbourhood conditions. Given differential access to desirable neighbourhoods and asset accumulation across racial groups, findings raise new and important questions regarding the meaning of homeownership for minority households and their communities.

Individual differences in the neighbourhood level determinants of residential satisfaction

“…Satisfaction is found to be more affected by neighbourhood characteristics for home-owners than for renters (Greif, 2015;Parkes et al, 2002). Greif (2015) models satisfaction and finds significant interactions of home-ownership with neighbourhood economic advantage, ethnic composition and the share of owner-occupied dwellings.…”

“…They find that home-owners, parents with children living at home, married couples, older people and lower educated people are less tolerant to Black neighbours. These afore-mentioned papers give insight in which population groups will be more sensitive to neighbourhood ethnic composition or more tolerant to ethnic minorities, however, the article by Greif (2015) on Los Angeles is the only one that focuses on individual differences in the effect of ethnic composition on satisfaction. Greif (2015) studies interaction effects between home-ownership and neighbourhood characteristics including the neighbourhood ethnic composition in models explaining satisfaction.…”

“…These afore-mentioned papers give insight in which population groups will be more sensitive to neighbourhood ethnic composition or more tolerant to ethnic minorities, however, the article by Greif (2015) on Los Angeles is the only one that focuses on individual differences in the effect of ethnic composition on satisfaction. Greif (2015) studies interaction effects between home-ownership and neighbourhood characteristics including the neighbourhood ethnic composition in models explaining satisfaction. She finds significant interaction effects, showing that for home-owners satisfaction is more affected by the neighbourhood ethnic composition than for renters.…”

“…Much research has been done on which personal characteristics affect residential satisfaction (Amérigo & Aragones, 1997;Galster & Hesser, 1981;Greif, 2015;Grogan-Kaylor et al, 2006;Lu, 1999;Parkes et al, 2002;Permentier et al, 2011). Similarly, many researchers have tested the effects of neighbourhood characteristics on satisfaction (Baum et al, 2010;Dekker, 2013;Galster & Hesser, 1981;Parkes et al, 2002).…”

“…There are only a few studies explaining residential satisfaction from neighbourhood characteristics that look into differences between population groups. The studies of Baum et al (2010), Friedman (2011), Hipp (2010) and Swaroop & Krysan (2011) analyse differences between racial or ethnic groups in the effects of neighbourhood characteristics on satisfaction, while Baum et al (2010), Greif (2015) and Parkes et al (2002) look into differences between owner-occupiers and renters. This is one of the first studies that, especially focuses on individual differences in the determinants of residential satisfaction.…”