Could a New Home Actually Make You Happier?

There are several reasons you might be in the market for a new home right now. Maybe you’re moving for work or perhaps you’ve outgrown your current space. Maybe you're ready to lay down roots or you're even interested in investing.

No matter your situation, buying a home has been marketed as the American dream for years—but will fulfilling that dream actually make you happy?

According to mental health professionals, the answer is yes—but also decidedly, no.

Before you take the plunge and buy a new home, it's important to make sure it’s a move that will make your life better instead of worse.

How a new home affects your mental health

Buying a new home has a profound impact on how we feel, largely because of the psychology behind what buying a new home means. 

“Historically, buying a new home is a benchmark of what we consider a successful life. This is especially true when buying your first home,” says John Puls, psychotherapist and addiction specialist at Full Life Comprehensive Care in Boca Raton, FL. 

Lorain Moorehead, licensed psychotherapist and owner at Lorain Moorehead Therapy and Consultation in Scottsdale, AZ agrees. She explains that a new home can offer a sense of accomplishment, success, and having something that is just your own. 

“Because it feels like a great deal of planning, learning, saving, and sacrifice goes into it, in many ways a new home can feel like one of the greatest accomplishments and thus can spike neurotransmitters like dopamine and serotonin that makes us feel good," says Moorehead.

When a new home can improve your life

A new home can do wonders for your mental health if it solves the major problems of your existing living situation.

“For example, if you’re a family moving from a small crowded apartment to a house with a better layout, more space, windows, and even nature, you may feel ease, relaxation, and freedom,” says Caitlin Moore, clinical director at Stone River Behavioral Health and Wellness in Holmdel, NJ.

Additionally, if the change brings you closer to social networks, schools, or jobs that are better for you and your family, the security and happiness that will likely follow could have a positive effect on your overall health and life.

Put simply, a home that makes your life easier and/or more comfortable is likely to enhance your overall mental well-being.

When a new home can lead to stress

On the flipside, the homebuying process itself—negotiating offers, inspections, moving logistics, and financial pressures—can trigger anxiety and tension. 

“Before you move in, feelings of buyer's remorse or the pressure to keep the space 'perfect' can also negatively impact your mental health,” explains Moore.

If the new home is not a good fit for your family and lifestyle, the initial enthusiasm could quickly turn into frustration or sadness.

Puls also points out that negative feelings may arise when the home you want and the home you can actually afford don’t align. This can cause a deep feeling of insecurity. 

“Additionally, the mortgage process can feel very anxiety provoking. You’re exposing your entire financial situation picture, debt, and cash in savings to a group of strangers from a mortgage company,” adds Puls.

How to increase your chances of a happy home purchase 

At the end of the day, your goal should be to buy a home that makes you (and your family) happier. These expert tips can steer you toward that direction:

Don’t try to 'keep up with the Joneses'

“Instead, buy a house that will make your life easier and provide amenities you will actually use and enjoy,” explains Allyssa Powers, therapist and educator at Allyssa Powers LLC in Akron, OH.

Research shows that buying a house to increase social connection leads to the best outcomes for happiness. “If your home is somewhere you can host others and create community, it will lead to the best outcomes for your overall well-being,” adds Powers.

Take things slow

People often make emotional decisions when buying a home, leading to issues and regrets down the road. Don’t be one of them. Take your time and do your due diligence. Weigh the pros and cons, finances, and alternative options. 

“By rushing, you may end up making a very costly mistake that will have a negative impact on your mental and financial health,” says Puls.

Budget for the long term 

Unfortunately, you won’t be off the hook financially after you make your down payment. “It’s your responsibility to plan your finances beyond the closing date,” explains Moorehead. 

Consider your mortgage payments, home maintenance and repairs, property taxes, HOA fees, and all the other expenses that come with homeownership. If the finances don’t work or put you on edge, it’s probably not a a good idea.