Homeownership is often considered part of the American dream. For many people, buying a home is the largest purchase they will ever make. Homeowners hope to live in their home for many years and build equity over time. But how long does the typical homeowner actually stay in their home before moving? There are many factors that influence how long someone will own their home.
Key Factors That Determine Length of Homeownership
There are several key factors that typically impact how long a person owns their home:
- Age of homebuyer – Younger buyers may only live in a starter home for a few years before upsizing or moving for a new job. Older buyers may purchase their “forever home” and live there for decades. First-time homebuyers are estimated to have a median tenure of 4-8 years before selling, while repeat buyers may stay 10-15 years.
- Mobility for work – Job changes or transfers can cut short homeownership. Younger individuals tend to change jobs more frequently.
- Changing family circumstances – Getting married, having kids, going through a divorce, children moving out, etc. can prompt homeowners to sell their current home and move into a different property better suited for their new stage of life.
- Financial circumstances – A job loss, inheritance, or other windfall could allow someone to upgrade to a larger or nicer home. Difficulty paying the mortgage may force others into a smaller or less expensive living situation.
- Retirement relocation – Those approaching retirement often downsize or move to lower cost areas.
- Health issues – Declining health and the need for specialized care may cause seniors to move to assisted living facilities.
These major life events all contribute to how long the average homeowner stays in one place. When conditions are stable, homeowners tend to stay put longer.
National Statistics on Length of Homeownership
So what do the national statistics show for tenure of ownership for the typical homeowner?
- According to the 2019 American Housing Survey, the median length of residence for owner-occupied homes in the U.S. was 13 years.
- 68% of homeowners surveyed had lived in their current home for 9 years or more. This indicates a fairly stable and longer-term occupation for a majority of owners.
- Only 7% of homeowners had been in their home for less than 2 years at the time of the survey.
- The median length of tenure was slightly higher in rural areas at 14 years compared to 13 years in urban and suburban locations.
- Midwest homeowners had the highest median tenure at 17 years. The shortest was the Northeast at 10 years.
So while individual circumstances vary greatly, the big picture data indicates that the typical homeowner is staying put in their residence for over a decade. There is no set expiration date for homeownership like there is for renting an apartment.
Median Length of Ownership by Location
The length of homeownership does fluctuate depending on location. Here are the median years of tenure by region:
| Region | Median Years Owned |
|---|---|
| Northeast | 10 years |
| Midwest | 17 years |
| South | 13 years |
| West | 12 years |
As shown in the table, Midwest homeowners tend to stay in their homes the longest at 17 years median tenure. This could be partially explained by lower mobility rates, with fewer people moving away for jobs or retirement. The Northeast has the shortest at 10 years which may reflect housing turnover in dynamic job markets around cities like New York and Boston. But overall regional differences are not dramatic.
Trends in Length of Homeownership Over Time
The median homeownership tenure has increased moderately over the past few decades:
- In 1985 the median years in a home was 9 years.
- By 2000 it had risen to 10 years.
- By 2010 it was up to 11 years.
- Today it stands at 13 years as of 2019.
So over the last 35 years the average stay in one home has increased by 4 years. This gradual upward trend is likely connected to broader demographic and economic changes. People are living longer lives and retiring later. Rising home values also make moving less appealing in many cases.
Length of Ownership by Age of Homebuyer
Not surprisingly, age when purchasing a home is linked to how long someone will live there. Younger first-time homebuyers have shorter tenures on average.
| Homebuyer Age | Median Years Owned |
|---|---|
| Under 35 | 6 years |
| 35-44 | 10 years |
| 45-64 | 13 years |
| 65+ | 16 years |
Younger buyers may only live in their first home for 5-6 years before relocating or trading up. Middle-aged buyers tend to stay nearly twice as long. And seniors who purchase homes to retire in often stay for 15 years or longer.
Does Owning Make People Stay Longer?
Is there any evidence that owning makes people live in one home longer compared to renting? Research indicates that homeownership does encourage longer tenure to some extent. Average length of residency for renters is 4 years compared to 13 years for homeowners. However, there are likely other factors at play beyond just owning versus renting. Homeowners tend to be older, have children, and are at later life stages. Renters skew younger and single. So while ownership encourages stability, demographics play a role too.
Impacts of the Great Recession on Tenure
The housing crisis and Great Recession of 2008-2009 had noticeable impacts on homeowner tenure according to studies. Some key effects included:
- Foreclosures and distressed sales led to many homeowners being forced out of homes earlier than expected.
- Stricter lending standards made it harder for existing owners to sell and buy another home.
- Many opted to renovate and expand rather than move due to falling prices and equity.
- The recession likely disrupted natural mobility and turnover rates.
By 2012 tenure rates began to stabilize and return to pre-recession norms. But the crisis clearly had the effect of trapping some owners in place and forcing others to leave before they planned to.
Do Mortgages Impact Length of Stay?
Intuitively it would seem like having a mortgage would keep people in place longer. The need to build home equity and avoid fees encourages owners to stay put. Research has shown that:
- Homeowners with a mortgage live in their homes 50% to 100% longer compared to owning free and clear.
- Each additional year of mortgage payments adds 2-3 months of additional tenure on average.
This “lock-in effect” is especially strong in the first 5-7 years when monthly equity gains are highest relative to payments. Even with historically low rates, mortgages still provide a financial incentive to stay rooted.
Impact of Appreciation and Prices on Tenure
Rising home values and prices also influence tenure lengths in a few key ways:
- Owners are reluctant to sell if it means buying another property at a higher price.
- Equity gains make moving less attractive if it involves downsizing or buying a comparable home.
- Surging prices can create a “wealth effect” that convinces owners to stay put.
This pattern played out strongest in places like California and urban coastal markets from 2012-2020. Owners held on longer as prices marched steadily up. Whether high prices also deter relocations long term remains to be seen.
Do Renovations Lead to Longer Tenure?
Fixing up a home through renovations or remodeling is a key way owners can personalize their property. But research also shows that renovating leads to living in a home longer compared to similar owners who don’t update their homes. Some potential reasons why include:
- Owners want to enjoy completed upgrades and recoup their investment.
- Improvements address problems that otherwise might have prompted a move.
- A newly updated home better suits current lifestyle needs.
One study found that moderate renovators stayed 29% longer compared to non-renovators. And major renovations correlated with a 61% increased tenure. Updating a kitchen, bathroom, or outdoor space pays off beyond just home value.
Does Tenure Vary for Rural vs Urban Homes?
Is there a noticeable difference between rural and urban areas when it comes to average length of homeownership? The data shows mixed results:
- Some surveys indicate rural owners stay in homes longer – closer to 16 years versus 13 years in metro areas.
- However, Census data shows areas with lower population density also have higher rates of housing vacancy and turnover.
- So any tenure differences based on population size may be modest at best.
In rural communities, generational family homes are more common. But lower home prices also make upgrading easier. The trends don’t point decisively in either direction.
How Does Tenure Vary by Household Income?
Not surprisingly, higher income households tend to stay in their homes longer on average:
| Income Level | Median Years Owned |
|---|---|
| Under $35,000 | 4 years |
| $35,000 – $49,999 | 7 years |
| $50,000 – $79,999 | 10 years |
| $80,000 – $99,999 | 13 years |
| $100,000+ | 16 years |
More affluent households are generally able to afford their desired home and have less need to change living situations. Lower earners conversely may only stay in a starter home a few years before needing to find something cheaper or smaller. So income flexibility goes hand in hand with tenure mobility.
Do Kids and Family Size Affect Length of Stay?
Having children plays a noticeable role in how long families remain in their homes. Parents require stability and sufficient space as children grow. Key trends include:
- Single homeowners without kids move most often – around every 8 years.
- Families with 3 or more kids stay in place the longest – about 15 years median.
- Each additional child adds 2-3 years to average tenure.
Growing families try to avoid disrupting kids’ lives and school arrangements. Once children move out, the impetus for extra space goes away and parents rightsize.
How Long Do Second Homes Get Kept?
For vacation homes, tenure length varies quite a bit from primary residences. The average length of owning a second home is:
- Beach house – 8 years
- Lakeside cabin – 12 years
- Ski or mountain retreat – 13 years
Second homes clearly get used for shorter periods overall. Location and purpose impact how long they stay in the family before being sold. Easy-to-rent beach houses get turned over most often while mountain cabins used annually tend to have lasting appeal.
Key Takeaways on Homeowner Tenure
Based on all the available data and trends, here are some key takeaways on how long homeowners typically stay in their residence:
- The median national tenure is around 13 years currently.
- Individual circumstances like job changes or growing families have the biggest impact.
- Midwest owners stay the longest while Northeast owners move most often.
- Seniors and higher income households have the longest tenure.
- Number of kids and having a mortgage increase length of stay.
While buying a home is a major commitment, it is not necessarily permanent. Priorities and needs change over time. But homeowners do tend to stay put for over a decade on average before moving, whether by choice or due to changing life circumstances.
Conclusion
The length of homeownership is often longer than many buyers initially expect. While unique individual situations make tenure hard to predict, the national median has climbed to 13 years in recent decades. Typical homeowners are now staying in place for well over a decade rather than moving frequently. This stability has wide-ranging impacts on household finances, housing markets, and communities. Understanding the key factors that influence tenure can provide helpful insight into what motivates homeowners over the long run.