The relationship between homeownership and life satisfaction in Turkey

The relationship between homeownership and life satisfaction and happiness has been studied in several countries. It has been found that homeownership generally increases the overall life satisfaction and happiness levels of individuals. However, there is no study that examine this relationship in Turkey. This study aims to fill this gap by analyzing the effect of homeownership and life satisfaction and happiness for the Turkish case. This study that analyzed based on different models uses Life Satisfaction Survey conducted by Turkish Statistical Institute (TurkStat) in 2014-2019. The first dependent variable in this study is a dummy variable which takes the value 1 if an individual scales his/her life satisfaction level as 7, 8, 9, 10 and 0 otherwise (memnun). The variable of interest is homeownership. The second dependent variable in this study is a dummy variable which takes the value 1 if an individual scales his/her happiness level as 1, 2 and 0 otherwise (mutlu). The variable of interest is homeownership. The model also includes age, income, gender, marital status of individuals, education year, number of rooms, housing zone, satisfaction with the neighborhood in which the individual lives, satisfaction with the health of the individual as control variables. The relationship between home ownership, life satisfaction and happiness was modeled using Linear Probability Model (DOM), Logistic Regression and Artificial Neural Networks (ANN). Similarly, in the DOM, Logistics and Probit Model analysis it is found that the probability of being satisfied with life is 4 percentage point higher for home owners than those who do not own their home at the means. Also, in the 3 Regression Models analysis it is found that the probability of being happy is 7 percentage point higher for home owners than those who do not own their home at the means. Models are also estimated in terms of gender and marital status. Results in terms of gender; It shows that women who own a home are approximately 3 units more satisfied with their lives than non-homeowners, and that they are 6.6 units more happy. As a result of the analyzes made for the "satisfied" dependent variable in all regression models, there is no statistically significant difference in life satisfaction levels of single householders compared to single households, but this situation is different for married individuals. It is seen that married individuals who own a home are 4.5 units more satisfied with their lives and 6 units happier than those who do not own a home.