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Despite the fact that people invest more financial, temporal, and psychological resources in their homes than in any other material entity, research on housing and mental health is remarkably underdeveloped. We critically review existing research on housing and mental health, considering housing type (e.g., single‐family detached versus multiple dwelling), floor level, and housing quality (e.g., structural damage). We then discuss methodological and conceptual shortcomings of this literature and provide a theoretical framework for future research on housing quality and mental health.