 This is purported to work by way of an upward or downward comparison effect (Keeping up with the Joneses).The balance of evidence is trending in favour of the hypothesis that living in poor neighbourhoods makes one less happy, and living in rich neighbourhoods actually makes one happier, in the United States.While social status matters, a balance of factors like amenities, safe areas, well maintained housing, turn the tide in favour of the argument that richer neighbours are happier neighbours.