caa a22 4500 445316381 CHVBK 20180317142648.0 cr unu---uuuuu 170323e20111101xx s 000 0 eng 10.1007/s11146-009-9212-0 doi (NATIONALLICENCE)springer-10.1007/s11146-009-9212-0 Valuing Homeownership [Elektronische Daten] [Khalid Sekkat, Ariane Szafarz] Housing tenure decision combines financial, economic and socio-psychological factors. This paper considers the global premium associated to homeownership. On the one hand, homeownership is associated to private benefits of being an owner. On the other hand, overinvestment in housing is harmful to diversification and distorts portfolio management. This trade-off, similar to the one associated to corporate private benefits of control, is the cornerstone of our theoretical model based on the expected utility maximization. The originality of the model comes from its simplicity. Furthermore, the empirical implementation of the model, using price and rent data normalized by square-meter, exhibits a homeownership premium for houses in the Brussels Region reaching at least 9% of the housing price. The findings are robust to several methodological refinements. In particular, they confirm the link between liquidity constraints and house prices documented in the literature. However, the premium may largely vary from one place to another, according to tax laws, cultural habits and social status associated to tenure. Springer Science+Business Media, LLC, 2009 Homeownership nationallicence Tenure choice nationallicence Housing nationallicence Real-estate nationallicence Sekkat Khalid Solvay Brussels School of Economics and Management (SBS-EM), Dulbea, Université Libre de Bruxelles (ULB), Brussels, Belgium aut Szafarz Ariane Solvay Brussels School of Economics and Management (SBS-EM), Centre Emile Bernheim, Université Libre de Bruxelles (ULB), Brussels, Belgium aut The Journal of Real Estate Finance and Economics Springer US; http://www.springer-ny.com 43/4(2011-11-01), 491-504 0895-5638 43:4<491 2011 43 11146 https://doi.org/10.1007/s11146-009-9212-0 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11146-009-9212-0 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Sekkat Khalid Solvay Brussels School of Economics and Management (SBS-EM), Dulbea, Université Libre de Bruxelles (ULB), Brussels, Belgium aut NATIONALLICENCE 700 1- Szafarz Ariane Solvay Brussels School of Economics and Management (SBS-EM), Centre Emile Bernheim, Université Libre de Bruxelles (ULB), Brussels, Belgium aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Springer US; http://www.springer-ny.com 43/4(2011-11-01), 491-504 0895-5638 43:4<491 2011 43 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer