This article investigates the behavioral consequences of homeowners’ participation in neighborhood affairs in Beijing, China. The research is based on semistructured interviews with homeowner leaders, property managers, and government officials. Participation fosters ethical citizenship by helping homeowners to acquire democratic skills, increase their awareness of property and political rights, and cultivate a sense of community. The development of ethical citizenship motivates homeowners to redefine legal citizenship. Homeowners have begun to take their rights seriously and actively participate in grassroots elections. The interaction between ethical and legal citizenship may carry important implications for future political development in China.