Jonah Lehrer has a fascinating post on why people buy the wrong house:

Ap Dijksterhuis, a psychologist at Radboud University in the Netherlands (and expert on unconscious thought), has done some cool studies that look at how people shop for homes, and how they often fall victim to what he calls a "weighting mistake". Consider two housing options: a three bedroom apartment that is located in the middle of a city, with a ten minute commute time, or a five bedroom McMansion in the suburbs, with a forty-five minute commute. "People will think about this trade-off for a long time," Dijksterhuis writes. "And most them will eventually choose the large house. After all, a third bathroom or extra bedroom is very important for when grandma and grandpa come over for Christmas, whereas driving two hours each day is really not that bad." What's interesting is that the more time people spend deliberating, the more important that extra space becomes.

They'll imagine all sorts of scenarios (a big birthday party, Thanksgiving dinner, another child) that will turn the suburban house into an absolute necessity. The lengthy commute, meanwhile, will seem less and less significant, at least when compared to the allure of an extra bathroom. But, as Dijksterhuis points out, that reasoning process is exactly backwards: "The additional bathroom is a completely superfluous asset for at least 362 or 363 days each year, whereas a long commute does become a burden after a while." For instance, a recent study found that, when a person travels more than one hour in each direction, they have to make forty per cent more money in order to be as "satisfied with life" as someone with a short commute. Another study, led by Daniel Kahneman and the economist Alan Krueger, surveyed nine hundred working women in Texas and found that commuting was, by far, the least pleasurable part of their day. And yet, despite these gloomy statistics, nearly 20 percent of American workers commute more than forty-five minutes each way.

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