Beyond Homeownership: Uncovering the Impact of Ownership-Residence Mismatch on Subjective Well-Being in Urban China

While extensive research has explored the impact of housing tenure on individuals' subjective well-being (SWB), little is known about the implications of the emerging owner-renting phenomenon—where homeowners live in rented housing instead of their owned property within the same city—referred to as the ownership-residence mismatch. This study draws on nationally representative survey data from the 2017 CHFS, supplemented by qualitative interviews conducted in 2025, to examine how both homeownership and the alignment between ownership and residence affect SWB. Our findings confirm the positive effect of homeownership on SWB. However, owner-renters, despite being well-educated and having high incomes, report lower SWB than those who both own and reside in their homes, highlighting the importance of ownership-residence alignment. Drawing on the concept of ontological security, we argue that not living in one's own home may undermine the sense of stability, control and identity crucial to SWB. The mismatch is particularly detrimental in first-tier cities, where high housing costs and intense competition exacerbate the challenges faced by owner-renters. These results call for more nuanced housing policies that move beyond the traditional own-rent dichotomy.