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Homeownership is encouraged by many governments because it is supposed to have a positive effect on both the individual and society as a whole. Homeownership is assumed to be preferred over renting, because it provides greater security, more freedom, financial advantage and therefore higher housing satisfaction. This theory has been developed and mainly tested in English-speaking countries. A number of researchers, most notably from continental Europe, have criticized the perceived superiority of homeownership and the effects that are ascribed to it by these theories. They state that, wherever there is a well-developed rental sector, renting represents an adequate and acceptable alternative to homeownership. It can also be questioned whether the theory can be confirmed for Southern Europe, where homeownership seems to be part of a family tradition and not a choice.

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