A study reveals that certain personality traits can affect a person's real estate decisions. How do you choose the right home for you while taking your personality into account?
A study titled "Real Estate and Personality" published in the Journal of Behavioral and Experimental Economics revealed that there is a "'very solid correlation' between personality and real estate choices," Realty Times quoted the National Association of Realtors on co-author Danny Ben-Shahar's interview with The Wall Street Journal.
The said study hypothesized that real estate decisions can be predicted based on a person's personality traits. The research was conducted on more than 1,100 respondents, who took a personality-assessment test.
In the said test, the Five Factor Model (FFM) was utilized to analyze and describe the relationship: openness to experience, extraversion, conscientiousness, neuroticism and agreeableness.
According to the publication, the participants in the study were asked to rate themselves according to the Five Factor Model. It has been found that those who rated high on neuroticism preferred to own their homes rather than rent one. Neurotic people were also found to choose "mortgages with lower loan-to-value ration."
Those who scored higher on conscientiousness, which reflects a person's efficiency and organizational skills, seemed to prefer fixed-rate mortgages than others. Those who rated themselves as forgiving (conscientiousness), sociable and energetic (extroversion) were more likely to invest in real estate than in stocks.
Meanwhile, Thought Catalog also reported on the best living areas for certain personalities based on the Myers-Briggs Test.
The said test examines one's personality based on his or her preferences. It determines a person's inclination to becoming an extrovert (E) or an introvert (I), sensing (S) or relying on his intuition (N), thinking (T) or feeling (F), and judging (J) or perceiving (P).
The publication stated that a certain city may match certain types of personalities based on the Myers-Briggs Test. An example would be for ISFJ's to live in Zurich, Switzerland, as the ISFJ's often prefer a "clean, well-ordered environment."
