Older Americans, especially baby boomers, are choosing to stay in their homes for longer
Homeowners in the US are choosing to remain in their homes for much longer than they did in the previous two decades, according to new analysis by Redfin.
The real estate brokerage revealed in its report that the typical US homeowner has spent 11.9 years in their current home, nearly double the 6.5 years reported in 2005.
This trend reached its peak in 2020, when the pandemic kept the average homeowner tenure at 13.4 years.
In its analysis, Redfin identified older Americans as the primary drivers of longer homeowner tenures.
It pointed to data indicating that nearly 40% of baby boomers have lived in their current homes for at least 20 years, while an additional 16% have remained in their homes for 10 to 19 years. Over a third (35%) of Gen Xers have also stayed in their homes for at least a decade.
Conversely, Redfin’s report found that millennials and Gen Zs tend to move more frequently due to job changes and life stage adjustments. They are also less likely to own homes compared to the older generations.
In fact, less than 7% of millennial homeowners have lived in their current homes for over a decade. Meanwhile, the majority of Gen Z homeowners – the youngest of whom was only 26 in 2023 – have been in their homes for less than five years.
Why are homeowners choosing to stay put?
Redfin cited several factors contributing to increased homeowner tenure among older generations.
Many baby boomers and Gen Xers have been incentivized to stay put in their homes due to low monthly homeownership costs and advantageous mortgage rates, Redfin said. Certain states also have tax policies that are favorable to older homeowners.
The report additionally noted the older generation’s preference for “aging in place,” bucking previous practices which would see seniors moving to smaller homes or entering assisted-living facilities.
What does this trend mean for the market?
The trend towards longer homeowner tenure has contributed to the scarcity of available homes for sale that is driving up housing costs for young, first-time buyers.
Despite dropping from its 2020 peak, Redfin said current patterns of homeowner tenure point to the likelihood that it will stay flat or increase slightly in the foreseeable future.
“Existing-home sales hit a 15-year low last year, with many homeowners locked in by low mortgage rates,” the report said. “While sales should pick up a bit this year, it’ll be more of a trickle than a flood.”
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