The median tenure for U.S. homeowners has risen significantly from 6.5 years in 2005 to 11.8 years in 2024, indicating less market turnover. This trend affects millennials and Gen Xers who may stay in starter homes longer and presents challenges for Gen Z buyers due to fewer entry-level homes available. While there was a slight decline in homeowner tenure during the pandemic housing surge, high mortgage rates are likely to push tenure rates up again. Another factor is the trend of baby boomers aging in place, often owning their homes outright, which keeps them in the market longer.
Older Americans are hanging onto their homes because they're financially incentivized to do so. Most (54%) baby boomers who own homes own them free and clear, with no outstanding mortgage.
Moving forward, we expect homeowner tenure to stay flat or increase slightly for the foreseeable future. Existing-home sales hit a 15-year low last year, with many homeowners locked in by low mortgage rates.
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