Social capital has been regarded as effective means to revitalize local communities though it is still unclear that how social capital accumulates. In this paper, using the dataset obtained from a recent survey on Semboku New Town, we analyze the positive effect of homeownership on the formation of social capital. In addition, social interactions between average social capital and individual behaviors at region level are empirically tested. The results show that homeownership encourages individuals to behave socially and that there exist positive social interactions of social capital formation between region and individuals. This paper also suggests several policy implications for accumulation of social capital from the viewpoint of homeownership.

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