While perusing through Facebook, Twitter, Instagram, or any of the other social media sites you may use that act as tiny windows into the lives of others, you may find yourself growing a bit green with envy. On these sites, it is only natural to see images of your friends on vacation, showing off their new puppy, or purchasing their first home and experience a bit of FOMO, or fear of missing out. Living vicariously through someone else may be just the impetus needed to get you up and doing some of these things for yourself, such as buying a house.
As CityLab reports, a new paper released by the National Bureau of Economic Research found a link between an individual’s Facebook network and their housing investments. A person with friends who have had positive experiences with making housing and property investments is much more likely to head out and purchase a home themselves, compared to people whose friends on social media have had negative experiences.
In fact, anyone who has seen their friends have positive experiences in the housing market are more likely to purchase a bigger home, spend more money on that home, and make a larger down payment.
People whose friends experience a 5 percent increase in house price over a two-year period between 2008 and 2010 were 3.1 percent more likely to buy a house within the next two years, according to the report. That’s not all: Anyone whose friends experienced this 5 percent increase were also more likely to pay more for their homes and make larger down payments.
To view the full report, click the link below.