This paper introduces the concept of "spatial location satisfaction" and examines its relation to the individual demand for homeownership. Based on a Danish questionnaire survey carried out in a rural study area (N=1000) and in an urban study area (N=1015), a tenure choice model was estimated relating spatial location satisfaction to homeownership, while adjusting for control variables. The spatial location satisfaction variable was constructed from two questionnaire items asking respondents to state their actual and preferred place of settlement given five location type options: large city, medium-sized city, small town, village, and "in the countryside". As hypothesised, the study shows a strong association between spatial location satisfaction and the individual demand for homeownership. This association is robust across study areas. Spatial location satisfaction is highest in the rural study area and explains about 6 percent of the rural-urban difference in homeownership rates. The identification of a positive association between spatial location satisfaction and homeownership adds credibility to population surveys that measure the correspondence between actual and preferred location type. This, in turn, provides increased impetus to use such survey data as one of the tools in formulating regional planning policies.
Journal of Housing and the Built Environment, 2010, Vol 25, Issue 3, p. 313-330