How Long Do Most Families Stay in Their Home? – The National Association of Realtors (NAR)
keeps historical data on many aspects of homeownership
. One of the data points that has changed dramatically is the median tenure of a family in a home
. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.
Why the dramatic increase?
The reasons for this change are plentiful!
The fall in home
prices during the housing crisis left many homeowners
in a negative equity situation (where their home
was worth less than the mortgage on the property). Also, the uncertainty of the economy made some homeowners
much more fiscally conservative about making a move.
With home prices rising
dramatically over the last several years, 93.7% of homes
with a mortgage are now in a positive equity situation with 79.1% of them having at least 20% equity, according
With the economy coming back and wages starting to increase, many homeowners
are in a much better financial situation than they were just a few short years ago.
One other reason for the increase was brought to light during a recent presentation by Lawrence Yun
, the Chief Economist
at the Realtor’s Summit
in San Diego, CA.
Yun pointed to the fact that historically, young homeowners
who were either looking for more space to accommodate their growing family or looking for a better school district were more likely to move more often (every 5 years). The homeownership
rate among young families, however, has still not caught up to previous generations resulting in the jump we have seen in median tenure!
What does this mean for housing?
Many believe that a large portion of homeowners
are not in a house
that is best for their current family circumstances. They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple planning to start a family that currently lives in a one-bedroom condo.
are ready to make a move. Since the lack of housing
inventory is a major challenge in the current housing market, this could be great news.
If You Liked This Blog Visit My Website For More Insightful Blogs