Economic drivers of dwelling satisfaction Evidence from Germany

Purpose - Sociologists are discussing whether or not economic growth enhances subjective wellbeing. To complement their research from a housing perspective, the purpose of this paper is to investigate whether aggregate income enhances dwelling satisfaction over time. While cross-sectional studies have only examined the direct influence of income on dwelling satisfaction, this paper suggests that there are additional influences mediated by other social indicators. Design/methodology/approach - Based on data from Germany, correlation and regression analyses examine the impacts of aggregate income and other social indicators on dwelling satisfaction. Path analysis is used to test for the existence of mediated relationships. Findings - The paper finds that aggregate income positively influences dwelling satisfaction. Environmental satisfaction, customer satisfaction and satisfaction with family relations also positively impact dwelling satisfaction and mediate influences of aggregate income. The mediated effects are stronger than the direct effect of aggregate income on dwelling satisfaction. Research limitations/implications - The longitudinal availability of aggregate customer satisfaction data is still limited. Future research on dwelling satisfaction is encouraged to account for customer satisfaction and to reexamine the analyses of this study with future data. Practical implications - Stimulating economic growth is a good strategy to improve dwelling satisfaction. Policies improving the environment, family support and shopping opportunities are also effective. Originality/value - This paper is original in that it examines the impacts of economic growth and customer satisfaction on dwelling satisfaction. While the extant literature has only analysed direct effects of income on dwelling satisfaction, this study also accounts for mediated effects.