Homeowners are staying in their homes twice as long as they were just 15 years ago, according to a new report from Redfin News.
- The typical U.S. homeowner has spent 11.9 years in their home, up from 6.5 years two decades ago.
- Homeowner tenure peaked at 13.4 years in 2020, just when the pandemic set off a moving frenzy, and has declined since then.
Boomers Staying Put. Nearly 40% of baby boomers have lived in their home for at least 20 years, and another 16% have lived in their home for 10-19 years.
- For Gen Xers, 35% have lived in the same home for at least 10 years while less than 7% of millennials have lived in their home for 10 years or longer.
Why Boomers Aren’t Moving. Unfortunately, the stars have aligned for boomers and they now have multiple reasons why they are staying put.
- 54% of baby boomers who own homes own them free and clear, with no outstanding mortgage.
- Nearly all boomers who do have a mortgage have a rate below the current rate which is closer to 7.0%.
- Some states, like Texas and California, have tax systems that have policies that make it financially beneficial for people to stay in their homes as they get older.
BOTTOM LINE: AS long as boomers are incentivized to stay put they apparently are going to do just that.
