U.S. Homeowner Tenure Drops to 11.9 Years, Redfin Report Finds

A recent report from Redfin reveals a significant decrease in the average length of time U.S. homeowners stay in their residences, with the shift attributed to factors such as aging baby boomers and job mobility among millennials and Gen Z.

The average length of time that a U.S. homeowner stays in their residence has decreased to 11.9 years, down from the peak of 13.4 years in 2020, according to a report from Redfin, a technology-powered real estate brokerage. This shift represents a significant change from two decades ago when the average tenure was 6.5 years. The report attributes the longer homeowner tenure to the aging baby boomer population, with nearly 40% having lived in their current homes for over 20 years, and another 16% for 10-19 years. In contrast, less than 7% of millennials have stayed in their homes for more than a decade, reflecting their younger age and greater job mobility. Gen Xers also show a propensity for longer stays in their homes, with 35% surpassing the 10-year mark. The data further reveals that the oldest members of Gen Z, who were 26 in 2023, typically have owned their homes for less than five years.

Financial incentives play a significant role in older Americans' decision to remain in their homes. More than half of baby boomers who are homeowners have no outstanding mortgage, leading to a median monthly cost of ownership that is just over $600. Additionally, tax policies in some states, such as property tax deferrals for seniors in Texas and California's Proposition 13, which limits property tax increases, encourage longer homeowner tenure. Another contributing factor to the increase in tenure since the early 2000s is the preference of many older Americans to age in place, supported by advancements in medical and home technology, as well as the financial benefits of staying put given the current higher mortgage rates.

The report also notes that the current lack of housing inventory and high costs are both a result of and a contributor to longer homeowner tenure. This dynamic poses challenges for young, first-time buyers, particularly as baby boomers own a disproportionate number of larger homes suitable for families. Following the pandemic-induced moving frenzy, which saw a spike in home sales due to remote work and low mortgage rates, homeowner tenure has seen a modest decline. Redfin anticipates that tenure rates will either remain steady or increase slightly as homeowners are locked into low mortgage rates, and while home sales may rise this year, a significant surge is not expected.

The changing landscape of homeowner tenure in the U.S. reflects the influence of demographic shifts, financial incentives, and housing market dynamics. These factors have implications for both older Americans looking to age in place and younger generations seeking to enter the housing market.