Americans Staying in Homes Longer, Locking Up Housing Supply

U.S. homeowners are now residing in their properties for an average of 12 years, marking the longest median tenure since 2022. This trend, highlighted in a March 4 report by Redfin, shows a slight increase from 11.8 years in 2024, primarily driven by rising home prices and high interest rates. This extended stay, almost double the 6.5-year average seen in 2005, contributes to a constrained housing inventory as existing homeowners are less inclined to sell and face higher costs for a new purchase.

The phenomenon is particularly pronounced in high-cost regions, with Los Angeles homeowners staying an average of 20 years, the longest in the nation. Other California metros like San Jose (18.7 years) and San Francisco (16.5 years) also exhibit significantly longer tenures. California's Proposition 13, which caps property tax increases, further incentivizes homeowners to remain in their current residences, exacerbating the housing supply shortage and pushing prices higher.

While a recent dip in interest rates below 6 percent offers a glimmer of improved affordability, the overall trend suggests that financial disincentives are keeping homeowners, especially older generations like Baby Boomers and Gen Xers, in place. These groups often benefit from being mortgage-free or having lower payments, making them less likely to relocate. Conversely, areas with lower home prices, such as Louisville, Kentucky, with an 8.3-year average tenure, see shorter homeowner stays, indicating that affordability remains a key factor in residential mobility.