Average Length of Homeownership
Curious about how long homeowners are staying in their homes? Recent stats shed light on the average length of homeownership and its changing trends. Examining a 20-year period from 1985 to 2005, there was minimal variation in home stay duration. On average, homeowners remained in the same house for five years in 1985, gradually increasing to six years by 2005. However, in a surprising twist, the average length of a homeowners' stay has more than doubled in less than two decades, with homeowners now residing in their homes for over 13 years. Let's take a look at what the future may be for a homeowners' length of stay and discuss the factors driving this trend.
Future of Homeowners Staying in the Same House
Where can we expect the average stay for homeowners to go over the next decade or so? I think in the short term and probably even in the long term as well, we're likely to increase the average stay of over 13 years. There are a couple of reasons I think that average will continue to climb.
1. We're experiencing a mortgage rate lockdown effect for many would-be sellers. They're simply not motivated enough to sell their home as they have these ultra-low interest rates starting in the high 2’s or low 3’s. If you couple that with a lack of supply across this country, a 6.5 million home deficit, that really does not bode well for that number to decrease. Having a lack of options and also not being motivated by having a locked-in low-interest rate is going to likely keep a lot of people in their homes over the next decade.
Posted by Matt Curtis
2. An unintended consequence is it's going to make it harder and harder for first-time homebuyers to get into their home as there's going to be less and less supply out there due to less motivated sellers and the lack of supply in this country. People staying in their homes longer does not bode well for first-time homebuyers, but it does bode well for people that currently own a home. They will likely continue to see price appreciation over the next decade as we continue to see inflation and just a lack of supply. Supply and demand helps drive home appreciation across the U.S.
If you don't want to be part of this ‘Renter Nation’ that we're seeing, shoot us an email at firstname.lastname@example.org or contact us here. We can give you a list of affordable home options in the Huntsville, Alabama area whether it be new construction or existing homes to help you start building wealth and get into your first home.