Pricier homes and a growing number of senior citizens willing and able to age in place are driving up the length of time people are owning their homes. The typical American homeowner has spent 13 years in their home, up from eight years in 2010, according to a new report from Redfin, the technology-powered real estate brokerage. Median home tenure increased in all of the 55 metros Redfin analyzed, leading to decreased inventory available for first-time homebuyers in many places.
Homeowners have been in their homes the longest in Salt Lake City, Houston, Fort Worth, San Antonio, and Dallas, with homeowners in those metros staying in their homes for more than 20 years on average.
“In Dallas, there are many neighborhoods that were built in the 1950s and 1960s where most of today’s residents are still the original homeowners,” said Dallas Redfin agent Christopher Dillard. “Because prices have been going up, and folks are gaining more and more equity, it’s hard to justify selling when there aren’t many if any affordable options.”
In the greater New York City area, the median home tenure in Nassau County, New York is 15.4 years, compared with 11.2 years in 2010. New Brunswick, New Jersey homeowners’ tenure is now 14.1 years, vs. 10.4 years in 2010.
Many local governments have put policies in place that reduce property tax burdens for senior citizens, which have made it more affordable for older people to stay in their homes longer, the report notes. In Texas, where homeowners tend to stay put the longest, homeowners over the age of 65 have the option to defer property taxes until the home is sold.
Homeowners age 67 to 85 are remaining homeowners longer, causing a shortage of 1.6 million homes, according to a report by Freddie Mac. In San Francisco, the median homeowner has been in their home for 14 years, compared to only 10 years in 2010. At the same time, there are about half as many homes for sale in San Francisco than there were in 2010, and the homes that are for sale are more expensive. The median home price has more than doubled in San Francisco since 2010, the report notes.
That’s in part because older San Franciscans who own affordable homes are staying put. In San Francisco, the median Redfin Estimate for homes where the resident hasn’t changed in over 20 years is about $122,000 lower than the median Redfin Estimate for homes where the resident has changed in the last five years. That means there are fewer affordable homes for sale for first-time homebuyers, making a market more competitive.
In Salt Lake City, where the median home tenure is the highest, the number of homes for sale has declined 59% from 2010 to 2019. That has led to a situation where current homeowners are further locked in place because they find it too difficult to sell and buy a home at the same time.
