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Residential satisfaction is a measure of the degree to which an individual's actual and desired (or aspired-to) living conditions match. A high level of residential satisfaction usually indicates a high degree of congruence between one's actual and desired residential situations, while incongruence between the two may lead to feelings of dissatisfaction. It is customary to distinguish between satisfaction with housing or dwelling and with neighborhood or surrounding area. These two types of residential satisfaction are intrinsically related. For example, an individual's assessment of housing conditions is likely to include its immediate surroundings, even his or her relationship with neighbors. But they reflect different aspects of an individual's residential experience. The factors that shape housing and neighborhood satisfaction overlap to some extent but are not identical.

Residential satisfaction as a research topic has shown a remarkable “staying power.” Since at least the 1950s, sociologists, urban planners, psychologists, economists, and geographers have tried to conceptualize this cognitive construct and identify its determinants. Judging from the new journal articles that are being published and theses and dissertations that are being completed in this area, there is no indication that scholarly interest in this topic is abating.

The persistent popularity of the topic may be attributed to two reasons. First, residential satisfaction is an important component of one's quality of life. To most people, housing is the largest consumption item in their lifetime, and home is where they find refuge and rest. The degree to which they are satisfied with their housing and neighborhood affects their mental health and general well-being. Residential satisfaction naturally becomes a concern of housing developers and urban planners as well as researchers. Measures of residential satisfaction provide important insights into individuals’ and households’ experience with housing and may be used to evaluate the success of housing programs that target different population groups and aid in the design of new, more effective programs. Second, individuals’ subjective evaluations of their housing and neighborhood affect the way they respond to residential environment and form the basis of demands for public action. In behavioral models of migration, residential satisfaction is postulated to mediate between individual socioeconomic characteristics and mobility intentions. Those people who are dissatisfied with their housing and/or neighborhood may consider relocation as a coping strategy. Empirical research has shown that residents with an intention to move are indeed more likely to move. Knowledge about the determinants of residential satisfaction therefore becomes critical to better understand mobility behavior.

Conceptualization

While scholars in different disciplines have studied residential satisfaction from somewhat different angles, the theoretical frameworks on which their work is based have changed surprisingly little since their initial conceptualization in the 1950s and 1960s. Attempts to conceptualize residential satisfaction all hinge upon the notion that residential satisfaction reflects the differences between individuals’ or households’ actual and desired housing and neighborhood situations. Sociologist Peter Rossi posits that as individuals progress through different life cycle stages, their housing needs and aspirations change, which often place them out of conformity with their actual housing and neighborhood situations. But discrepancy may also result from external changes, such as increased crime and disorder, and undesired shifts in neighborhood population composition. This lack of fit between their actual and desired living conditions creates stress or dissatisfaction. Households may bring their housing into adjustment with their needs and hence reduce their residential stress and dissatisfaction through migration. Households’ changing space needs are considered the most important, but they may also change their prestige and other social needs.

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