Homeowners are Staying in Their Homes Longer

Homeowners stay in their homes twice as long as they did in 2005, according to Redfin’s latest market survey. The typical homeowner spends 11.9 years in their home, compared to 6.5 years nearly two decades ago. Homeowner tenure peaked at 13.4 years in 2020.
There are several reasons why homeowner tenure has increased since the early aughts. 54% of boomers have no mortgage. Their median monthly cost of owning a home is just around $600.
Here are the metros where homeowner tenures are the longest and shortest in terms of years:
Longest Tenure
  1. Los Angeles, CA — 18.7
  2. San Jose, CA — 17.8
  3. Cleveland, OH — 17.4
  4. San Francisco, CA — 16.7
  5. Memphis, TN — 16.5
Shortest Tenure
  1. Louisville, KY — 7.4
  2. Las Vegas, NV — 8.0
  3. Charlotte, NC — 8.5
  4. Nashville, TN — 8.5
  5. Raleigh, NC — 8.5

Our take
There are several reasons for the inventory shortage, and this is certainly one of them. Older homeowners hanging onto their homes, with little or no mortgage. It’s no wonder that existing-home sales hit a 15-year low last year. As agents, we need to be aware of this trend because experts are expecting homeowner tenure to stay flat or increase slightly for the foreseeable future.

 

James and David, The Blueprint

February 20, 2024