The length of time homeowners stay in their homes before selling or moving can vary greatly. Some people only live in a home for a few years, while others remain for decades. On average, homeowners tend to stay in their homes for around 8-13 years before moving. However, the exact length of stay depends on several factors. These include housing market conditions, life events, and personal preferences. Understanding how long people typically live in their homes can provide useful insight for homeowners and home buyers alike.
Quick Answers
How long is the average homeownership tenure in the U.S.?
The average homeownership tenure in the U.S. is around 13 years according to most recent data from the U.S. Census Bureau.
What percentage of homeowners move within 5 years?
Around 20% of homeowners move within the first 5 years of purchasing their home according to the National Association of Realtors.
Do first-time home buyers stay longer or shorter than repeat buyers?
First-time home buyers tend to stay in their homes for a shorter period than repeat buyers. Data shows the median tenure for first-time buyers is around 6-8 years compared to 9-11 years for repeat buyers.
Key Factors That Influence Length of Stay
Several key factors can impact how long homeowners end up staying in their homes:
Housing Market Conditions
Booming real estate markets can motivate homeowners to sell and move up to a bigger or better home. Sluggish markets may discourage moving. Rising interest rates also limit buying power which can restrict housing options.
Life Events
Major life events often prompt homeowners to relocate. Common triggers include job changes, retirement, marriage, divorce and the arrival of children. Growing families require more space which spurs home upgrades.
Costs of Moving
The costs of buying and selling real estate like agent commissions and fees can deter quick turnovers. Homeowners may stay longer to maximize their return on investment.
Emotional Attachment
Many people grow sentimentally attached to their homes, especially long-term owners and those who raise families. This emotional bond often extends occupancy.
Local Ties
Strong connections to community, schools, friends and family nearby also promote stability and longer stays for some owners.
Financial Constraints
Being underwater on a mortgage or unable to qualify for a new home loan may lock homeowners in place beyond their desired tenure. Economic downturns can limit mobility.
Average Length of Stay by Location
Homeowner tenure lengths often vary among different states and regions based on housing costs, job opportunities, and other local factors:
| State | Average Length of Homeownership |
|---|---|
| California | 7 years |
| New York | 10 years |
| Texas | 8 years |
| Florida | 9 years |
| Illinois | 11 years |
In general, the western United States sees higher turnover rates and shorter tenure lengths largely due to greater housing costs and more job changes. Midwestern states like Illinois tend to have more stable markets and longer tenures.
How Length of Stay Varies by Age
Younger first-time home buyers tend to move more frequently than older homeowners:
| Homeowner Age | Average Length of Stay |
|---|---|
| Under 35 | 4-6 years |
| 35-44 | 7-9 years |
| 45-54 | 10-12 years |
| 55-64 | 12-15 years |
| 65+ | 15-20+ years |
Younger adults are more mobile and experience more life changes around career, relationships and children. Older owners tend to be more settled and financially stable. Seniors may age in place longer in their homes.
Trends Among First-Time Home Buyers
First-time home buyers have shorter tenure lengths than repeat buyers:
– Median tenure is 6-8 years for first-time owners.
– Around 33% move within 5 years.
– Key reasons include home size becoming too small, job relocations, and major repairs/updates.
– First-timers lacking experience may purchase a starter home that no longer fits needs.
– Shorter tenures mean first-timers may accumulate less housing equity.
Trends Among Repeat Home Buyers
Those who have purchased homes before tend to stay longer:
– Median tenure is 9-11 years for repeat owners.
– Only around 15% move again within 5 years.
– Prior experience allows savvier next home purchases.
– Financial ability to afford preferred homes curbs relocations.
– Emotional attachment and comfort may grow after first home.
– Repeat buyers gain more equity if they stay longer.
Trends During Major Economic Cycles
Weak economies and recessions can restrict mobility and lengthen tenure:
– During the 2008 housing crisis, tenure rose from 8 to 10 years.
– Job losses limited relocations and downsizing capacity.
– Owing more than homes were worth locked owners in place.
– Strong economies and bull markets enable more turnover and shorter stays.
Outlook for the Future
Several factors may impact tenure lengths in the coming years:
– Rising mortgage rates could hamper relocations and extend stays.
– A potential recession could create challenges selling or securing new financing.
– Demographic shifts as younger generations enter homeownership may reduce the average length of stay.
– Remote work trends could promote more interstate moves if physical job location becomes less important.
– Ongoing housing supply shortages may compel more owners to stay longer rather than face limited options.
Conclusion
How long homeowners stay in their homes can vary significantly based on current housing market dynamics, individual circumstances, and life stage. While the national average hovers around 10-15 years, tenure lengths have shifted over time. As economic, social, and demographic factors evolve in the years ahead, typical homeowner occupancy patterns may change as well. But many individuals and families will continue to spend a sizable portion of their lives in a single beloved home.