Denise DiPasquale and Edward L. Glaeser examine whether homeowners are better citizens than renters, focusing on social capital and community investment. Using data from the U.S. General Social Survey (GSS) and the German Socio-Economic Panel (GSOEP), they find that homeowners are more likely to engage in community activities, such as volunteering, joining organizations, voting, and gardening. Homeowners are also more likely to attend church and have higher levels of social capital. The study suggests that homeownership may encourage these behaviors due to both the incentives of property investment and the reduced mobility associated with homeownership. The authors use an instrumental variables approach to address potential endogeneity in homeownership, finding that the relationship between homeownership and citizenship is likely causal. They also find that homeowners are less mobile, which may explain part of the effect of homeownership on community investment. In Germany, similar patterns are observed, though the magnitude of the effects is smaller. The study also finds that areas with higher homeownership spend a larger share of their budget on education and highways, while spending less on welfare. Overall, the results suggest that homeownership positively influences the formation of social capital and community investment. However, the authors caution that the effects of homeownership may be due to the differences between homeowners and renters, rather than homeownership itself. The study highlights the complex relationship between homeownership, mobility, and community investment, and suggests that policies promoting homeownership may have mixed effects on citizenship.Denise DiPasquale and Edward L. Glaeser examine whether homeowners are better citizens than renters, focusing on social capital and community investment. Using data from the U.S. General Social Survey (GSS) and the German Socio-Economic Panel (GSOEP), they find that homeowners are more likely to engage in community activities, such as volunteering, joining organizations, voting, and gardening. Homeowners are also more likely to attend church and have higher levels of social capital. The study suggests that homeownership may encourage these behaviors due to both the incentives of property investment and the reduced mobility associated with homeownership. The authors use an instrumental variables approach to address potential endogeneity in homeownership, finding that the relationship between homeownership and citizenship is likely causal. They also find that homeowners are less mobile, which may explain part of the effect of homeownership on community investment. In Germany, similar patterns are observed, though the magnitude of the effects is smaller. The study also finds that areas with higher homeownership spend a larger share of their budget on education and highways, while spending less on welfare. Overall, the results suggest that homeownership positively influences the formation of social capital and community investment. However, the authors caution that the effects of homeownership may be due to the differences between homeowners and renters, rather than homeownership itself. The study highlights the complex relationship between homeownership, mobility, and community investment, and suggests that policies promoting homeownership may have mixed effects on citizenship.