| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 881941 | Journal of Behavioral and Experimental Economics | 2014 | 9 Pages |
•We examine the correlation between personality traits and individual preferences in the real estate market.•We find significant correlation between the Big Five personality traits and preferences over housing tenure, mortgage, and investment attributes.•We find evidence indicating that the detected micro-level personality-preferences association conveys macro consequences on real estate market equilibrium outcomes.•The outcomes are in line with the intuition that arises from applied studies of personality.
This paper explores preferences and choices in the real estate market from a personality perspective. First, we employ micro-level data on individual scores on the Big Five personality test and personal financial real estate preferences to evaluate the role of personality in individual real estate market-related preferences. Empirical results provide solid evidence for an association between personality traits and individual preferences on a series of housing tenure, mortgage, and real estate investment attributes. Moreover, based on cross-sectional state-level aggregate personality scores and macro real estate market indicators, we find evidence indicating that the detected micro-level personality-preferences association conveys macro consequences on real estate market equilibrium outcomes. Research findings thus provide a new perspective for understanding individual preferences and equilibrium outcomes in the real estate market.
