What is the average home ownership length of time someone stays in a home?
Average Time in a Home
For more than 20 years, from 1985 – 2008, the median time people owned the same home averaged exactly 6 years. However, since then things have changed. In fact, that average has increased almost 50% to almost 9 years.
And before you ask, yes – the National Association of Realtors does track that type of information.
Why the Change?
The reasons for this change are varied. The housing crisis of 10+ years ago caused many homeowners to be in a negative equity situation. Due to falling prices, the property’s mortgage exceeded the property’s sale value. But because of uncertainty about the economy, many homeowners began to think more conservatively about moving. However, home prices have since risen dramatically. In fact, more than 93% of homes now have a positive equity value. And over 79% of homes have at least 20% equity value. Due to an increasing economy and rising wages, many homeowners are now in a better financial situation than before. The whole process is started by young homeowners purchasing their first home. Or maybe they’re looking for a bigger home to accommodate their growing family.Possibly, they’re looking to get their children into a better school district. And each time this happens, it sets a chain of events going. The sellers then buy a bigger home. Eventually the seniors begin to downsize and move into smaller homes or adult communities. However, the rate of home ownership for young families hasn’t caught up to the previous generation’s. And because of this, the the average home ownership length is longer than previously.
The Effect on the Housing Market
Many are of the opinion that lots of home owners are living in housing that isn’t appropriate for them. Millennial couples who are planning a family may be living in a one bedroom condo. And, long after the last of the children have moved out, baby boomers are still in their four bedroom colonial home. And now, these owners are getting ready to move. This could be great news, since there is a lack of housing inventory, .
Have you exceeded the the average home ownership length? When you’re ready to either buy or sell a home, please contact us.
Would you like to look at active adult communities in Monmouth County?
Related Blog Posts