Economy
Is FOMO Driving Your Housing Decisions?
People who are favoriting their friends’ smart housing purchases are more likely to make their own.
Fear of missing out may be a more powerful force than any of us realize. According to a new study, FOMO—or something like it—may have a direct influence on how people make decisions in the housing market. And that influence appears to be profound enough to affect housing prices at the county level.
A new paper released by the National Bureau of Economic Research finds a link between a person’s Facebook network and her housing investments. The paper shows that people whose friends have positive experiences in the housing market are more likely to buy themselves. They’re also more likely to buy a larger home, more likely to pay more for a home, and more likely to make a bigger down payment when their friends are making successful investments.