When househunting, most people obsess over location, price and property features. They measure commute times, count bedrooms and assess kitchen benchtops. They scrutinise school zones, compare mortgage rates and debate whether the master bedroom gets enough morning sun. Real estate agents know the drill: buyers want to know about square metres, nearby amenities and resale potential.

Yet new research reveals that one of the most important factors in residential satisfaction gets overlooked entirely: the people living next door. While buyers spend hours analysing floor plans and researching suburb demographics, few ask the critical question that could determine whether they love or regret their purchase: "Who will my neighbours be, and could we become friends?"

This gap between what buyers focus on and what actually matters to them turns out to be more significant than realised. A new study, conducted across seven separate research projects spanning the UK, United States, European Union and Asia, found that consumers who see themselves as independent individuals prioritise assessing whether potential neighbours could become friends, often choosing properties with neighbours they can be friends with.

“Independent consumers, compared with their interdependent peers, give more weight to neighbour information in residence decisions,” the researchers said in their paper, Neighbours as strangers or friends? How consumers' self-construal affects the weight of neighbour information in residence decisions. The research adds a new dimension to property purchasing considerations, which typically focus on location, price and physical features rather than social dynamics.

The psychology behind home-buying

Conducted by Dr Sophie Fan, a lecturer in the School of Marketing at UNSW Business School, together with Xingning (Fiona) Qu from the University of Hong Kong and Professor Fengyan Cai from Shanghai Jiao Tong University, the research found that people who value individual decision-making and self-reliance view neighbours as potential new friends, while those who focus primarily on maintaining close bonds with existing family and friends are less motivated to form new neighbourly connections.

“Although everyone must make decisions about where to live, we know little about how consumers perceive social interactions with neighbours and incorporate information about neighbours into their residence decisions,” the study noted, highlighting a significant gap in understanding residential choice psychology.

Learn more: Would you pay extra to live among people from your background?

“Conventional wisdom says community-oriented people care most about relationships,” said Dr Fan. “Yet this research shows that independent, self-reliant consumers are often the ones eager to befriend their neighbours.”

Published in the Journal of Consumer Psychology, the study revealed that people with independent mindsets “do not perceive firm boundaries between in-group and out-group members, believing that others can move between these categories more fluidly”. In simple terms, self-reliant individuals see strangers as potential friends, while group-oriented people prefer to stick with their established inner circle.

Through innovative eye-tracking technology, researchers confirmed that independent consumers literally pay more attention to neighbour-related information when evaluating residential options. The methodology employed multiple approaches, including controlled laboratory experiments, large-scale surveys with 1480 verified homeowners, and behavioural observation studies to validate the findings across different contexts and cultures.

Why independent types choose neighbours over demographics

Seven studies revealed that people who see themselves as independent actually place more importance on who their neighbours will be than those who see themselves as interdependent and more focused on family or long-term friends.

Independent people are often more open to meeting new people and turning neighbours into friends. Interdependent people, while socially connected, tend to invest their energy in relationships they already have, so details about neighbours play a smaller role in their housing decisions.

Across different countries and contexts, the studies consistently showed that independent-minded individuals paid more attention to information about potential neighbours, preferred communities where they could easily make friends, and valued similarities that help build friendships (such as shared hobbies) more than less personal traits like race.

Essentially, Dr Fan said people who value individual autonomy ask themselves: “Could I be friends with these neighbours?” while those who prioritise existing relationships ask: “Will these neighbours leave my family and close friends alone?”

“In everyday life, this could mean that relationship-oriented people might be more open to living in diverse neighbourhoods, while self-reliant people may prefer more homogeneous communities where it is easier to form friendships with similar neighbours,” Dr Fan explained.

Implications for real estate professionals

The findings present significant implications for real estate practitioners and property developers who have traditionally emphasised location, environment and development prospects while neglecting neighbour information.

“Our research demonstrates that neighbour information can be an important selling point in the real estate industry, especially for independent consumers,” the study concluded. This suggests real estate professionals could enhance their effectiveness by incorporating neighbour demographics and community characteristics into their sales approaches.

The research indicates that “practitioners may use the current findings to customise their promotional appeals to the dominant culture at the national, state, or local level,” given that English-speaking cultures tend to have more independent consumers while Asian, African and Eastern European cultures tend toward more group-oriented approaches.

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For property developers and local governments, the findings suggest that community design and social programming could be tailored to different personality types, with independent-minded individuals more likely to value spaces and initiatives that foster new social connections.

“Understanding these differences can help in creating and marketing neighbourhoods that truly fit people’s social needs,” said Dr Fan. “Housing platforms and community apps can highlight neighbour cues in listings, such as local activities, shared amenities, or opportunities for casual interaction. Since independent individuals care most about neighbours they can be friends with, it is especially effective to emphasise friendship-relevant signals, like shared hobbies or social spaces, rather than demographic details.”

The future of residential decisions

As societies become increasingly mobile and diverse, understanding the psychology behind residential choices becomes more critical for multiple stakeholders. The research suggests that “in a world that is becoming increasingly diverse, people are more mobile than ever before” and that considering residents’ relationship orientation when designing community spaces or initiatives could enhance social connections.

“Local governments and real estate developers may benefit from considering residents’ self-construal when designing community spaces or initiatives that foster social connections, especially for independent individuals who may actively seek new social ties in unfamiliar neighbourhoods,” the study recommended.

Learn more: Yes, attractive real estate agents do achieve substantial price premiums

The findings also indicate potential applications beyond residential markets, suggesting that understanding how different consumers think about neighbours can help shape real estate marketing and the design of healthier, more connected communities.

Research co-author, Xingning (Fiona) Qu, concluded: “Community developers might highlight opportunities for everyday connection, such as community centres, playgrounds, or shared courtyards,” she said. These small design choices can make independent-minded residents more likely to engage and help diverse neighbours form meaningful ties.”

In the neighbourhood: Homebuying FAQ 

Q: What factors most influence homebuyer satisfaction?
A: Recent research shows that neighbour relationships play a key role in residential satisfaction, often more than location or property features.

Q: How do independent and interdependent consumers differ in housing choices?
A: Independent consumers prioritise potential friendships with neighbours, while interdependent consumers focus on existing social ties.

Q: Why should real estate professionals consider neighbour information?
A: Highlighting neighbour and community characteristics can make property marketing more effective and relevant to buyer psychology.

Q: How can community design improve residential wellbeing?
A: Neighbourhoods that encourage social interaction – such as shared spaces and community events – foster stronger satisfaction and engagement.

Q: What does this research mean for future housing development?
A: Developers can design and market communities that align with personality and social needs, improving resident satisfaction and retention.