Effects of housing wealth on subjective well-being in urban China

Homeownership means not only having a permanent residence but also generating a considerable financial gain from house value appreciation. This study investigates how housing characteristics affect individuals' subjective well-being (SWB) in China by using 2011 China Household Finance Survey data. The findings suggest that the channel through which housing characteristics significantly affect SWB mainly depends on housing assets. House value appreciation significantly improves SWB; however, housing debt does not affect the role of house value in SWB. Furthermore, housing wealth has a more significant impact on SWB for low-income homeowners and those living in the eastern region of China. Our findings shed light on potential solutions to enhance the SWB of urban residents. In particular, the government should pay more attention to raising their life satisfaction under the background of high house prices.