How People Underestimate the Financial Risks of Home Buying

Ozgun Atasoy, Boston University, USA
Remi Trudel, Boston University, USA
Patrick Kaufmann, Boston University, USA
We show that people underestimate the financial risks of buying a house. Our experiments show that even when well diversified, people judge stocks as more risky investments than homes; and people judge a diversified portfolio of homes as more risky than a single home because a home feels more tangible.
[ to cite ]:
Ozgun Atasoy, Remi Trudel, and Patrick Kaufmann (2014) ,"How People Underestimate the Financial Risks of Home Buying", in NA - Advances in Consumer Research Volume 42, eds. June Cotte and Stacy Wood, Duluth, MN : Association for Consumer Research, Pages: 401-401.